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 candlestick chart pattern?

The doji candlestick chart pattern is a formation that occurs when a market’s open price and close price are almost exactly the same. There are different variations of the pattern, namely the common doji, gravestone doji, dragonfly doji and long-legged doji.

Can dragonfly doji signal a downtrend?

After a downtrend, the Dragonfly Doji can signal to traders that the downtrend could be over and that short positions could potentially be covered. The bearish version of the Dragonfly Doji is the Gravestone Doji. It looks like an upside-down version of the Dragonfly and it can signal a possible downtrend.