Candlesticker, LONG LEGGED DOJI

LONG LEGGED DOJI

Definition

This candlestick is a Doji with very long shadows.

Recognition Criteria

1. The length of the body is null or close to null.
2. Both of the upper and lower shadows are long and close in length.

Candlestick Requirements and Flexibility

Ideally, the body should be colorless and have zero length. However, candlesticks with close-to-zero body lengths and white or black body colors are also acceptable. Both shadows should be long.

Trader’s Behavior

The Long Legged Doji is observed when prices trade well above and below the day’s opening price but then close either exactly at or almost at the same level as the opening price. It means that the end result is not different from the initial open despite the whole excitement and high volatility during the day. This implies a loss of sense of direction and that there is a great amount of indecision in the market. This candlestick is especially important when it is seen at market tops.

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