This YouTube tutorial (presented by Alan Solarsh) explains the long-legged doji candlestick: its visual features (open and close at the same level, long upper and lower wicks), its interpretation as market indecision and a potential reversal signal, and how to trade it when it appears at the top or bottom of trends. The video presents multiple four-hour chart examples (including GBP/JPY) with concrete outcomes: a 158-pip decline after a top-located doji, other trades yielding ~156–159 pips or ~98 pips, and a large move of 345 pips (with a later 172-pip exit). The presenter also mentions using confirmations such as the 8-period exponential moving average and the stochastic oscillator and finishes with a YouTube subscription/call-to-action and a weekly 0.005 BTC giveaway.
Questions this video answers
Alan Solarsh
Open and close are the same (or nearly so) with long upper and lower wicks (shadows).
158 pips
Approximately 156–159 pips, ~98 pips, 345 pips, and 172 pips (as cited in the walkthrough).
The 8-period exponential moving average (8 EMA) and the stochastic oscillator.
Chapters
Alan Solosh here, the passive income guru in this video tutorial explains to you the long legged doji candlestick formation and how to trade it.
As you can see the open and close of the price is exactly the same, hence the line across and you've got long wicks which means that the price of the, of this commodity forex or share traded like quite, in quite a high range and then closed out basically at the same level. Okay. This indicator shows that there's lots of indecisiveness within that, within the price of, of whatever you're trading. And the, the price is set for reversal. So jiji means cross, hence the, that's the Japanese name and which shows you the graphical representation. So this long legged doji found at the top of a bullish trend means that you need to be getting out of the trend, take your profits and get out and wait for the next trading day to see what, what happens with that, with the currency. If you'd like to go short, you can go short. If it's a false positive then you know you can get back straight back into the trade. Close out your, your, your losing bearish trade and get back into the bullish trade if that's what you're doing. Found at the bottom of a bearish trend, wait for the next day, the next day is open or and close and the following day to open to see the direction of that commodity forex or forex and and then you can make a decision of whether you want to go long and, and take that full trend in the bullish direction. So let's have a look at forex charts and see exactly what has transpired when we find a long legged doji so as to confirm exactly what our findings are. So here is a perfect example of a long legged doji formed at the top of a trend indicating to you that you should be getting out and taking profits. And as you can see in the next four hour, when the next four hour candle started, we went immediately into a downward trend and continued to do so quite significantly for around 158 pips. So that this currency, the pound yen lost 158 pips in the next, in the next four hour session following this doji, this long legged doji over here. So again a positive signal indicating that the long legged doji was correct. Here is another example of a long legged doji at the bottom of a small reversal over here going into a J hook pattern. And if you jumped in when the bullish candle arrived above the 8 exponential, you would have Written this, this trend all the way to the top. So let's have a look at how much you would have gained if you followed the long legged doji candle. And then the next four hour session you got into the trade, you would have ridden this candle all the way to about here. There's your spinning top. But that wasn't an indication to get out. You would have gotten out on this candle over here when it bounced below the 8 exponential. So you would have made 156 if you, if you did, if you trade it as per this candle, when the candle jumped above the 8 exponential, you would have gotten 159 pips which is, or rather let's go over here, jumping out over here. Probably 98 pips. Nothing wrong with their trade. Very, very positive. Lots of of money would have been made with that decision based on the candlestick formation. That gave you a clear indication that we had entered into a bullish trend. Not to mention the fact that we've got a bullish harami over here. So the next, the next entry point would have definitely been over here on the open of the following candle in the next four hour session. So again, learning the candlestick formations is definitely a winning formula and setting yourself up for success. Here is a perfect example of a long legged doji at the top of a, of a bullish trend signaling the end of that bullish trend. And you can actually have confirmation of the over overbought condition on the stochastic over here. Which definitely indicates that you need to be getting out of this trade, taking your profits and possibly putting in a short on this currency. And let's have a look and see if we did that on the next four hour signal. If we put in a short over there, right down there, we would have made 345 pips. Massive, massive move. And if we stuck it out then we would have gotten in, we would have gotten out over there when the next bullish candle arrived above the 8 exponential moving average. So you would have made 172 pips which is an absolute massive move. So I hope that you like this video. If you like this video, please mouse over this video. In the top left hand corner is my is the icon to YouTube. Click on that icon. It'll take you to YouTube and just scroll below the video on YouTube. Click on the subscribe button. On the right of the subscribe button is a bell icon. Click on the bell icon. Underneath that is a thumbs up icon. Click on that and also leave a positive feedback as well as your bitcoin wallet address in the comment section because I give away 0.005 of a Bitcoin every single Friday and you could be the lucky winner of that price. So good luck for that and I'll see you on the next video.
