Long-legged Doji

When there are high shadows in the Doji pattern and the size of the candle is high, it is known as a long-legged Doji pattern.

The Open and Close price are almost same but the length of the shadows in this pattern are high that shows the session was very volatile. It not merely an indecision. It is not merely a lack of strength of bulls or bears. It is a significant hit on the moral of both bulls and bears. Both parties are in a trouble.

Long-legged Doji is a very significant Doji pattern and an impending reversal pattern. The breakout of this pattern is a reliable formation.

The body line on the Doji pattern can appear at different levels which can tell us more about the sentiment of market participants. The Doji candle can be further distinguished based on where the body line appears on the candle.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

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