Huntraders | Neutral Doji Long Legged candle

Neutral Doji Long Legged candle

Using candlestick patterns is the most popular illustration technique today. With their help it is easier to recognise trend reversals and to calculate future price movements. It is essential to understand candlesticks for successful trading.

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Definition

Neutral Long Legged Doji has long shadows. It is an important signal of a trend reversal.

Trend: Reversal
Expected trend: Neutral
Previous trend: Neutral
Reliability: Moderate
Type: Neutral
Number: 1

Recognition

The Neutral Long Legged Doji’s body is a horizontal line (or it is very small).
Both shadows are long and they have similar length.

Interpretation

Neutral Long Legged Doji reflects uncertainty on the market. It is formed when the trading happens much above/below the opening price during the day, but then the share closes near the opening price. Despite the high volatility during the day, there is no big difference between the opening and closing prices.

Important factors

The signal of a Neutral Long Legged Doji is especially important when it happens at the top of the channel. The formation requires confirmation, which can be share price movement in the opposite direction of the previous trend.

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