Dragonfly Doji means In Candlesticks Pattren - Forex learning Pips

   The Dragonfly Doji is a significant bullish reversal candlestick pattern that mainly occurs at the base of downtrends.
dragon fly doji candlestick chart pattern

The Dragonfly Doji is made as soon as the available, high, and close are exactly the same or around the same cost (Where the open, high, and close are the identical cost is quite unusual). The main element of the Dragonfly Doji is the long lower shadow.

The long reduced shadow suggests that the market tested to find where demand was located and discovered it. Bears had the ability to press prices downward, but a location of help ended up being available at the lower of the afternoon and purchasing pressure ended up being in a position to push costs backup to the opening price. Thus, the bearish advance downward was completely rejected by the bulls

Dragonfly Doji Candlestick Chart Example

The chart below of the mini-Dow Futures contract illustrates a Dragonfly Doji occuring at the base of a downtrend:


Within the chart above associated with mini-Dow, the marketplace began the day testing to get where demand would enter the market. The mini-Dow eventually discovered help during the low of the afternoon, therefore much support and subsequent buying pressure, that prices could actually close your day around where they began the time.

The Dragonfly Doji is an extremely helpful Candlestick pattern to aid traders aesthetically see where help and demand is located. After a downtrend, the Dragonfly Doji can signal to traders that the downtrend might be over and that short positions should probably be covered. Other indicators should be used along with the Dragonfly Doji pattern to ascertain purchase signals, for instance, a rest of a downward trendline.

The bearish form of the Dragonfly Doji is the Gravestone Doji (see: Gravestone Doji).