A doji with long shadows on both sides, showing a wide, violent range that resolved exactly where it began.
Open and close are effectively equal and both shadows are long. Price travelled a great deal and settled nowhere, which is the purest picture of disagreement on a chart.
These often appear on news bars, at session opens, and at the end of extended moves. A long-legged doji on a volume-climax after a sustained trend is a classic exhaustion hint, because heavy trading that produces no net movement means the aggressive side is being absorbed.
The practical problem is the range. The candle's own high and low define the natural invalidation, and they may be several atr apart. Many traders respond by waiting for price to break the doji's range and then trading in that direction with the opposite extreme as the stop, accepting a later entry for a defined risk.
Original diagrams for the ideas on this page. Illustrative, not real market data.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.Range versus trend. On the left price keeps bouncing between the same floor and ceiling, which is a range. On the right each high and each low is higher than the last, inside a pair of sloping lines called a channel.
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