LDD (Long Donkey Dong) is a term used by the vampire traders in the Dr. Bob School of Forex Trading. It is a type of pattern seen in forex and stock trading charts. It is easily identified by a string of short candles staying inside the bollinger bands on a candlestick chart. It is an indication of a lack of direction and consolidation in a forex pair or stock, and is a very risky time to trade, since a channel breakout tends to lack much momentum in either direction and could turn back around and return to the channel quickly. The name of this pattern is derived from the similarity in appearance of this type of channel to the extended male member of a donkey.
Mark: Doc, what do you think about the setup on the E/J 30 min?
Doc: That's an LDD. Don't touch an LDD. Nothing good can come of it.
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