Bullish Long Legged Doji Pattern
BULLISH LONG LEGGED DOJI PATTERN (BLLDP)
the market losing its direction
1. Market is on a downtrend and in a bearish mood;
2. Then there is a Doji that gaps in the downtrend direction;
3. The body is a horizontal line (or it is significantly small);
4. Both the upper and lower shadow are long and of almost equal length.
The BLLDP shows that there is a lot of confusion and indecision in the market. This pattern indicates that the prices moved well above and below the day’s opening level. However, the close is virtually at the opening price level. The result is a very little change from the opening price in spite of the day’s excitement. The market lost its sense of direction.
1. The BLLDP is one of the important reversal signals
2. It is more important at tops
3. This pattern requires confirmation on the next trading day (through a move opposite to the previous trade).