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Definition

 

In the Bullish Long Legged Doji the opening and closing prices are around the middle of the trading range and the shadows are long in both directions. It reflects the uncertainty and hesitation on the market. It is one of the most important trend reversal signals.

  • Trend: Reversal
  • Expected trend: Bullish
  • Previous trend: Bearish
  • Reliability: Moderate
  • Type: Bullish
  • Number: 1

Recognition

  • The market is in a downward trend.
  • The second day is a Doji with a gap in the trend’s direction.
  • The body of the candle is small, only a horizontal line.
  • Both shadows are long and have similar lengths.

Interpretation

Bullish Long Legged Doji reflects uncertainty on the market. In this rare pattern, the price fluctuates above and below the closing price, but returns at the end of the day and closes really close to the opening price. The difference between the opening and closing prices are small. Despite the large trading volume, the direction of the prices fluctuates.

Important factors

Bullish Long Legged Doji is more important at the top of the channel. It consists of a single candle. It requires a confirmation on the next day, which should be in the opposite direction of the previous day’s trading.