Business, Legal & Accounting Glossary
The Long-Legged Doji has long upper and lower shadows with the Open and Close price in the middle of the day’s trading range. The Long-Legged Doji is typically drawn in black or the color of the previous candlestick.
The Long-legged Doji results when prices have traded well above and below the session’s opening level, but the end result shows little change from the open, reflecting the indecision of traders.
As with other Doji’s, the Long-Legged Doji often signals the reversal (or end) of a trend. The Long-legged Doji has a long upper and lower shadow that is almost equal in length, however when the candlestick’s close is below the midpoint it signals future price weakness.
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This glossary post was last updated: 22nd March, 2020