Long Legged Doji Series Of Doji

However, the same difference applies to the case of the gravestone doji and the shooting star, as doji has no body but only wicks, while the hanging man and hammer have a short body at the top of the candle.

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A doji candlestick pattern is considered to be a transitional formation since it doesnt signal either one of a continuation or a reversal of the trend.

This means a doji can be classified as both a reversal and a continuation pattern, as it signals there is no firm outcome of who has control over the price action.

Doji candles are quite similar to spinning tops as they both send the same message: price neutrality and indecision.

The only real difference between these two is that the former have no body while the latters bodies are larger and longer.

The pattern signals that the bulls have pushed the price action higher, but were unable to force a close near the candles high.

As a result, the bears were able to return the price lower and the open, close, and low are all near one another.

As seen above, the gravestone doji candlestick pattern looks very similar to the shooting star pattern.

Both are seen as reversal bearish patterns with the only difference being that the gravestone doji has no body, but the open and close are at the same price, or extremely close to the same price, while a shooting star should ideally close at the bottom of the candle with a short (red) body.

The long upper wick signals the loss of control and momentum on the side of bulls and it signals the impending reversal of the price action.

Again, this pattern signals indecision as there is no clear indication about the future trend.

A long-legged doji candlestick formation can occur in both strong uptrends and downtrends.

Long Legged Doji Series Of Doji

If there is a series of doji candles in a row, the price action suggests that the current trend may be in the closing stages, and a reversal may take place soon.

It can occur in both an uptrend and a downtrend, but it is considered to be stronger when it takes place at the bottom of the downtrend.

As you can see from the picture, a dragonfly doji looks very similar to a hanging man or a hammer candlestick pattern.