Long legged doji is a candle with long upper and lower shadows and a small real body. Long legged doji candlestick pattern
There are three types of Doji.
Today we are going to discuss long legged doji.
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Long Legged Doji Candlestick Pattern
Whenever you see the open price equal to the close price. Not only this, the upper shadow should appear equal to the lower shadow. You must understand that this is a long legged doji. The Long Legged Doji can be either Bearish or Bullish. We will understand this further.
Types of Long Legged Doji
As I told you the long legged doji can be bearish as well as bullish. So we will understand it in two parts. You can also say that there are two types of long legged doji.
- Bearish Long Legged Doji
- Bullish Long Legged Doji
Bearish Long Legged Doji
Bearish Long Leg Doji is formed at the top of an uptrend. This means that the market is going to decline from here. Not only this, the next candle gap down should be open from the Bearish Long Legd Doji.
Bullish Long Legged Doji
A Bullish Long Leg Doji is formed at the bottom of the Down trend. Simultaneously the next candle should be open gap up. It means that the market is going to rise.
For intraday trading you can use 5 minutes and 15 minutes time frame and for positional trading you can use 1 day time frame.
Trade Setup – Bearish Long Legged Doji
First you have to see the uptrend. A bearish long leg doji is formed at the top of the uptrend. The next candle gap down should be open. Also you will get a breakdown of Bearish Long Legged Doji Low. This means that you are getting a selling opportunity. You have to place the stop loss above the high of the long legd doji.
Trade Setup – Bullish Long Legged Doji
You have to see the down trend. A Bullish Long Leg Doji is forming at the low of the down trend. The next candle should open gap up. You should get a breakout of the high of the Bullish Long Legged Doji. Your stop loss should be below the low of the bullish long legd doji
Example – Bearish Long Legged Doji
Example – Bullish Long Legged Doji
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