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Bearish Medium Reliability Candlestick Patterns
Pattern: reversal
2. BEARISH LONG LEGGED DOJI
Characteristics:
1. Overall, market is on an uptrend;
2. There is then a Doji that gaps in the direction of the uptrend;
3. The body of the Doji is either a horizontal line or it is significantly small; and
4. The upper and lower shadows of the Doji are long and are almost of equal length.
Brief Explanation:
The BLLDP is a Doji portrayed by very long shadows. This shows the indecision of the buyers and sellers. It is an important reversal signal. The Long Legged Doji tells us that the prices trade well above and below the opening price. However, they close virtually at the opening price level. The end result is a very little change from the initial open despite the excitement and volatility during the day. The market has lost its sense of direction.
Notes:
1. The Long Legged Doji is a single candlestick pattern
2. On Day 2, a confirmation in the form of a move opposite to Day 1’s trade is suggested.
1. Bearish Dragonfly Doji 2. Bearish Long legged Doji 3. Bearish Engulfing
4. Bearish Gravestone Doji 5. Bearish Doji Star 6. Bearish Harami Cross
7. Bearish Meeting Lines 8. Bearish Advance Block 9. Bearish Deliberation
10. Bearish Try Star 11. Bearish Two Crows 12. Bearish Breakaway
1. Bearish Dragonfly Doji
Pattern: reversal Reliability: low/moderate
Identification
A Doji forms at the upper end of a trading range with a long lower shadow (the longer the more bearish) with no, or almost no upper shadow.
The Psychology
In an uptrend or within a bounce of a downtrend, a sharp intraday sell-off is followed by a reversal which causes the stock to close at its opening price near the day's high. Although the stock recovers from its intraday sell-off, it suggests the bulls are starting to lose strength, and a reversal may occur. A weak following day on solid volume is still needed to confirm the pattern.
The bearish Dragonfly Doji is similar to the bearish Hanging Man, bullish Dragonfly Doji, and bullish Hammer.
In an uptrend or within a bounce of a downtrend, a sharp intraday sell-off is followed by a reversal which causes the stock to close at its opening price near the day's high. Although the stock recovers from its intraday sell-off, it suggests the bulls are starting to lose strength, and a reversal may occur. A weak following day on solid volume is still needed to confirm the pattern.
The bearish Dragonfly Doji is similar to the bearish Hanging Man, bullish Dragonfly Doji, and bullish Hammer.
2. BEARISH LONG LEGGED DOJI
Characteristics:1. Overall, market is on an uptrend;
2. There is then a Doji that gaps in the direction of the uptrend;
3. The body of the Doji is either a horizontal line or it is significantly small; and
4. The upper and lower shadows of the Doji are long and are almost of equal length.
Brief Explanation:
The BLLDP is a Doji portrayed by very long shadows. This shows the indecision of the buyers and sellers. It is an important reversal signal. The Long Legged Doji tells us that the prices trade well above and below the opening price. However, they close virtually at the opening price level. The end result is a very little change from the initial open despite the excitement and volatility during the day. The market has lost its sense of direction.
Notes:
1. The Long Legged Doji is a single candlestick pattern
2. On Day 2, a confirmation in the form of a move opposite to Day 1’s trade is suggested.
