Long-Legged Doji

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Definition of 'Long-Legged Doji'

The Long-Legged Doji is the same as a Doji but with a longer wick. Compare the two side by side below.

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The longer the "legs" (also called wicks or tails) of a Doji are the more the indication that equilibrium has been reached. If a long legged Doji appears at the end of a trend then this suggests that the trend may be over and it is time for a reversal. The market is telling the trader that an area of indecision has been reached.

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