#2: Long Legged Doji
A “long-legged” doji is a far more dramatic candle than the common doji star.
In simple terms, the wicks on both ends are typically longer than the doji star candlestick.
So what does it mean when you see a long legged doji?
Well, it simply means this that at some stage during the formation of the long legged doji, both bulls and bears had the opportunity to dominate but really matched each other in the end.
And when the candle closed, there was really no winner.
Now, here are the 2 most important thing about the long legged doji candlestick that you should be know. You should really focus on the closing price in relation to the midpoint (the 50% of the length of the doji):
- if the close is above the midpoint, then it is considered a bullish. It almost looks like a bullish pin bar with no body. If you see this form in support levels etc, you should take notice.
- if the close is below the midpoint, then it is considered bearish. It would almost look like a bearish pin bar. If you see this form in resistance levels, you should take notice.
Now, remember, as I mentioned before, If the long legged doji forms anywhere on the chart, it is totally irrelevant and should be ignored.
If it forms on levels of importance like support and resistance levels, then you should take notice.
Here’s an example of what I’m talking about: