What is a dragonfly doji pattern?

A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price. The dragonfly doji is a signal of a potential reversal in security price with the open, close, and high prices virtually the same.

What is Dragonfly doji Candlestick?

A dragonfly doji candlestick is a candlestick pattern with the open, close, and high prices of an asset at the same level. A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price.

How to trade dragonfly doji?

Here are a few strategies to trade the Dragonfly Doji pattern. As a bullish reversal pattern, the Dragonfly Doji is a great pattern to watch for when the price is on an uptrend. Just wait for a pullback to start, and then spot when the Dragonfly Doji appears. That often signs the end of the pullback and the start of the new leg to the upside.

When does dragonfly doji show up?

The Dragonfly Doji shows up when the price tumbles to a certain point but then returns to the open of a given period, regardless of whether you’re trading on the H1, H4, D1 timeframes any other chart. The pattern forms when bears are actively pushing the price downwards.