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.

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 a Doji candle chart?

A doji candle chart occurs when the opening and closing prices for a security are just about identical. If this price is close to the low it is known as a "gravestone," close to the high a "dragonfly", and toward the middle a "long-legged" doji.

Is Dragonfly doji a bullish signal?

The Dragonfly Doji is widely used as a bullish signal. But few traders would risk opening positions based on the pattern alone. That is because the Dragonfly is a weaker signal than a combination of technical indicators. Here are the main limitations of the patterns you should take into account: