Independent Forex Trading

Long Legged Doji

The long legged doji candlestick pattern represents a large trading range with a virtual equal amount of indecisiveness between buyers and sellers. This is represented by the equal open and close prices and long upper and lower shadows of approximate, equal length.

long-legged-doji.jpg

Long Legged Doji Candlestick Analysis

The long legged doji candlestick pattern is a reversal signal and is, therefore, most valid when it appears during an established trend. When the long legged doji appears in an established uptrend it provides clues for a possible reversal to the downside. While the appearance of a long legged doji in a downtrend provides hints that the market may be reversing to the upside.

Confirmation

The long legged doji candlestick pattern becomes increasingly relevant when the following occur:

  • The long legged doji has an equal open and close, while having long upper and lower shadows.
  • It is preceded by a strong trend.
  • Confirmation candles are used to confirm the reversal.
  • Overbought or Oversold indicators confirm a change in market direction.

Forex Trading Ideas

The long legged doji may be traded alone, or with a combination of signals and/or indicators. For example:

  • Step 1 – Wait for a long legged doji to appear during an established trend.
  • Step 2 - Confirm the trend reversal with at least one confirmation candle.
  • Step 3 – Further confirm overbought or oversold conditions using the RSI – Relative Strength Index.*
  • Once conditions 1 – 3 are met place an entry order.

* Additional confirmation ideas – confirm the doji formation when it appears outside of the Bollinger Band or when the Stochastic Oscillator signals oversold or overbought conditions.

Never Miss a Trade Opportunity Again

Candlestick Pattern Recognition Robot

Continuously monitor all currency pairs and time compressions around the clock for important candlestick patterns using the Candlestick Pattern Recognition Robot. Get Your Copy Today.

Customization

By adding additional confirmation signals and indicators the evening star candlestick pattern has the potential to become increasingly accurate in predicting a trend reversal. FxSpyder provides integrated customization tools for hands free trade automation using the JavaScript Object Model. Full details are included in the Help Section of the FxSpyder trading application.

Want Fast Robot Customizations?

FxSpyder provides complete script customization services with a short turn-around time and for a reasonable price. Plus, who better to create your FxSpyder autotrading scripts than the FxSpyder Programming Team. Contact Us Today.

Download Free Candlestick Pattern Recognition Robot
Live Chat