What is Dragonfly doji?

The Dragonfly Doji is typically interpreted as a bullish reversal candlestick chart pattern that mainly occurs at the bottom of downtrends. The Dragonfly Doji is a Candlestick pattern that can help traders see where support and demand are located. It can be used with other indicators to identify a possible uptrend.

What does dragonfly mean?

The Dragonfly can mean that bears were able to press prices downward, but an area of support was found at the low of the day and buying pressure was able to push prices back up to the opening price. Thus, the bearish advance downward was entirely rejected by the bulls.

What is a Doji and how does it work?

A Doji generally signals a reversal pattern and forms when an asset’s open and close prices are virtually equal for a given period. However, it can also signify a continuation when both buyers and sellers are gaining momentum. They are most commonly seen during periods of consolidation and help analysts identify potential price breakout points.

Is the Dragonfly doji a good trend reversal pattern?

The dragonfly doji is a solid trend reversal pattern that certainly should be part of your trading toolbox. It’s a unique chart pattern and demonstrates a significant swing in momentum to the upside which is perfect for swing trading. This information can be golden if you are a swing trader, or looking to exit a position.