DOJI LONG-LEGGED CANDLESTICK

A long-legged doji candlestick, which belongs to the Doji family, is created when the opening and closing prices are almost equal. As a result, the candlestick has a tiny body and long shadows on both sides, up and down. When there is a market equilibrium between buyers and sellers, the long-legged doji appears.

In terms of pattern psychology, the long-legged doji indicates a battle between bulls and bears, with neither side coming out on top. The bulls are joyful at points of the day because price is rising to the sky, while the bears are in complete control at other times as they force price down near the earth's core. By the end of the day, however, the price has returned to its original level, leaving behind long shadows and sweaty brows.

The Long-Legged Doji chart pattern is generated when the open and closing prices are almost identical, and both the upper and lower shadows of the doji are taller than the usual shadow length. The lengthy upper and lower shadows are the most crucial component of the Long-Legged Doji.

Consider the following factors to determine whether the candlestick is a 'Long-Legged Doji.'

• Because it's a doji candle, the opening and closing prices are same or almost identical.
• The upper and lower shadows are both quite lengthy.
• The body of the candle is in the middle or around the centre.

When long-legged doji candles appear during a strong uptrend or decline, they are considered the most noteworthy. The long-legged doji indicates that supply and demand factors are approaching balance and that a trend reversal is possible. This is due to the fact that equilibrium or hesitation indicates that the price is no longer moving in the same direction. It's possible that public opinion is shifting.

During an uptrend, for example, the price is driven higher, and most periods' closes are higher than the open. The long-legged doji indicates that there was a war between buyers and sellers, but that they eventually came out on equal footing. This is in contrast to previous eras when the buyers held the reins.

Before acting, some traders will want to see further confirmation—price swings that follow the long-legged doji. This is due to the fact that long-legged dojis might appear in groups or as part of a bigger consolidation. Depending on which manner the price breaks out of the consolidation, it may result in reversals or continuations of the previous trend.

• In a bull market, candles that close in the middle portion of the candle perform better.
• In a bear market, Candles with closures in the bottom third of the candle operate best.
• The green-bodied doji shows a slight tendency to act as a continuation pattern.