Sunday, 12 October 2025

LONG-LEGGED DOJI FALL STRATEGY 🕯️


🗯️ WHAT IS A LONG-LEGGED DOJI?

Small body + long wicks = Indecision and power struggle.
When seen in a downtrend, the probability of sellers gaining control increases.


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💭 WHAT DOES THE PSYCHOLOGY BEHIND IT SAY?

Although buyers try to recover, selling pressure dominates.
The trend may continue or a downward breakout may occur.


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👀 HOW TO TRADE IT?

Entry: Open a SHORT position when the price breaks below the low of the candle.

Stop Loss: Place it at the highest point of the candlestick formation.

Profit Target: Close at the nearest support level or based on your risk/reward ratio.



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🧩 EXAMPLE STRATEGY: BTC/USDT

A Long-Legged Doji formed on the 15-minute chart.

Price moved below the low of the candle → SHORT position opened.

Stop loss was placed at the high of the candlestick.

Target was set at the nearest support zone.



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♟️ WHY IS IT IMPORTANT?

If this formation appears especially after a bullish move, it may signal a trend reversal.
With disciplined risk management, it enables profitable short trades.


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🎯 CONCLUSION

The Long-Legged Doji is a warning that selling pressure might strengthen.
When used correctly, it can help you profit from downward trends.


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