The Dragonfly Doji candlestick pattern is a rare, single-candle bullish reversal indicator, characterized by a “T” shape where the Open, Close, and High of the candle’s body are at similar price areas. Often found at the bottom of downtrends, this pattern serves as a valuable tool to identify support, demand areas, and potential uptrends across various time frames.
Candle Body
A “T” shape candle where the Open, Close, and High of the candle’s body are at very similar price areas. Note that sometimes the body can be at the same price.
Candle Wick / Shadow
The wick must be considerably long. This means that markets were tested, and demand levels were found.
Candle Colors
Usually little to no color is present but candles can be green or red.
Modus Operandi
A Dragonfly Doji usually can be found at bottom of downtrends. It’s a great signal to use for identifying support and demand areas as well as uptrends. DragonFly Doji occurs in all time frames.
Fun Fact
A Dragonfly Doji is usually very rare. The name was formed as the candle represents a dragonfly’s head and body and the trend on both sides represents its wings.
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