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Long Legged Doji Candlestick ExamplesĪfter a brief definition, now let us take a look at some examples of long legged doji candlesticks.

Sometimes, the existing trend may continue after a period of consolidation, but most often, the appearance of a long legged doji candlestick precedes a trend reversal when the power of the opposing side eventually overcomes the existing trend. As such, long legged doji candlesticks are seen as being more significant when they occur in the midst of a strong uptrend or a strong downtrend since this occurrence could signify that the forces of supply and demand have reverted to equilibrium and a change could be imminent. This indecision may mark the start of a period of consolidation, during which more such dojis may form, or break out into the start of a new trend. The long legged doji candlestick pattern forms due to an equality in power between buyers and sellers in the market, and is a sign of indecision amongst market players. Understanding Long Legged Doji Candlesticks Other times, they may have a very short body in place of the dashed line.

The long legged doji candlestick most often looks like a cross as shown in the below diagram. Often, the body of a long legged doji looks non-existing but is a mere dashed line because the asset has the same opening and closing price that day. It is a long legged candlestick that has long wicks on both the top and bottom, and a small body that is located in the middle of the candle’s range. The long-legged doji is a one candle pattern in Japanese candlestick charting that signals a potential exhaustion of the pre-existing trend.