A long-tail Doji is a candlestick pattern with both upper and lower shadows and usually closes close to the opening within the candlestick pattern's time frame. As shown below:

The long-tailed Doji candlestick pattern can signal strong hesitation between the bulls and the sellers in the current market with a large trading range but a hybrid does not really show that buyers or sellers are really in control to push prices sideways.

This indecision candlestick is seen by traders as a signal that an end to the current trend is high because the investors and investors have been unable to keep the price moving in one direction.

In a bullish market, a long-tailed doji can warn of an impending trend reversal. Similarly, during a downtrend, a long-tailed doji at the end of the trend could signal a potential reversal.

The long-tailed doji can also signal the end of a trend, but then the market is likely to move sideways within a certain range as both push the market in one direction (up or down). Since buyers and sellers are in balance, the tension is reflected in the price action, neither side is really dominant.

Here's what a long-tailed doji candlestick pattern offers traders:
  • The long-tailed doji has a very long upper and lower tail while the tiny real body has the same opening and closing prices.
  • This candlestick pattern signals market indecision.
  • It could be a signal of a trend reversal.
  • This can also be a signal that a sideways market is about to form.
  • Many traders will wait for the next candle to appear on the chart after the long-tailed doji has formed to confirm the reversal as there is a higher probability of success.
  • Not always the long-tailed doji candlestick pattern works well.
  • There is a high chance that the long-tail doji will be a signal of reversal when this candle appears at the end of an uptrend and also when the market falls into overbought or this candle appears at the end of a downtrend. at the same time, the market falls into an oversold state.
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