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THE CANDLESTICK TRADING BIBLE
The Dragonfly Doji pattern
The Dragonfly Doji is a bullish candlestick pattern which is formed
when the open high and close are the same or about the same price.
What characterizes the dragonfly Doji is the long lower tail that shows
the resistance of buyers and their attempt to push the market up.
See the example below:
The illustration above shows us a prefect dragonfly Doji. The long
lower tail suggests that the forces of supply and demand are nearing a
balance and that the direction of the trend may be nearing a major
turning point.
See the example below that indicates a bullish reversal signal created
by a dragonfly Doji.
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THE CANDLESTICK TRADING BIBLE
In the chart above, the market was testing the previous support level
that caused a strong rejection from this area.
The formation of the dragonfly Doji with the long lower tail shows us
that there is a high buying pressure in the area.
If you can identify this candlestick pattern on your chart, it will help
you visually see when support and demand are located.
When it occurs in a downtrend, it is interpreted as a bullish reversal
signal.
But as i always say, you can’t trade candlestick pattern alone, you will
need other indicators and tools to determine high probability
dragonfly Doji signals in the market.
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