What is Long Legged Doji Candlestick?
Long Legged Doji is a type of candlestick ,the open and close are same or very very close to each other and we have upper and lower shadows as well.
Underlying Psychology of Long Legged Doji
This means that, there were many market participants buying and selling the underlying stock at any price during the session and due to this continuous buying/selling price couldn’t move in any direction and closed at the open price. Long legged Doji represent the indecision in the market and are neutral in nature.
How to Trade Long Legged Doji
Decision: Since Long legged Doji are neutral, traders should wait for market direction. If price breaks upward,they should buy and if price breaks downward,they should start looking for selling opportunities.
Stop loss: If its a buy then low of candle will act as stop-loss. In case of sell , high of candle will act as stop-loss.
Main Points to Consider
- If Long Legged Doji appears after a uptrend,at resistance or after a Long White Maburozu candle, it potentially act bearish candle.
- If long legged Doji appears after a downtrend,at support or after a Long Black Maburozu candle, it potentially act as bullish candle.
Candlestick beginner? Here are some articles you might be interested in
- what are the candlestick and how to read them.
- What is a Dragonfly Doji Candlestick and how to use it for trading.
- Introduction to candlestick patterns.
- Long legged doji candlestick pattern and how to use it for trading.
- Gravestone doji candlestick and how to use it for trading.
Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment.Joe Vidich