Investor Education Pattern Recognition LONG LEGGED DOJI

Financial Indicator

Equity pattern-recognition tool provides you with the Pattern Recognition execution environment for running LONG LEGGED DOJI recognition against Equity. Equity momentum indicators are usually used to generate trading rules based on assumptions that Equity trends in prices tend to continue for long periods.
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First, we can take note of the large trading range, which may indicate that there is indecisiveness in the market. With price moving so much in one period, you want to look at volume levels and fundamentals to understand why there is a large range. Secondly, this can signal trend reversal if it occurs after a trend in either direction. It could indicate a battle between the bears and the bulls in the market. Again, refer to volume and money flow to see if there was a surge of new money. Lastly, it could be a resting point in the market, and what is meant is people could simple be taking profits or stop losses were hit.

If you have are unfamiliar with the candlestick pattern doji, I highly recommend to go and read what that candlestick pattern is as it will give you insight to what this pattern entails. As the title may suggest, a long legged doji is a doji that has long wicks, indicating that the trading range is wide but the open and close were essentially the same. Easily located on a chart, it can mean a few different things.


Understanding the reasoning behind the move can help to give you insight as to where the market may be headed. A doji is a simple pattern to located and a long legged doji may be even easier. MacroAxis has a plethora of tools and information to help you become informed on a particular topic. Test this pattern in your current trading setup and see if it give you an extra edge.

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