Pattern Overview
Description
Candle with no upper wick and a long lower wick, resembling a "T" shape.
Meaning
Found in downtrends; suggests possible bullish reversal if confirmed by a strong upward move.
What is the Dragonfly Doji candlestick pattern?
The Dragonfly Doji has a long lower wick and no upper wick, forming in downtrends to signal potential bullish reversal. This pattern reveals that sellers were initially in control, pushing prices lower, but buyers stepped in to push prices back up to the opening level. The Dragonfly Doji’s unique shape signifies that strong buying support exists at the lower price level, hinting at an impending reversal.
Recognizing the psychology behind a Dragonfly Doji can enhance a trader’s ability to anticipate trend changes, especially in markets where support levels are being tested. For those eager to master technical analysis, The Chart Guys offer tools and educational resources to help identify, interpret, and trade patterns like the Dragonfly Doji with confidence.
Join The
Chart Guys!
To learn from other experienced traders and technical analysts, why not join our unique trading community? We can't wait to welcome you in our trading room to answer your questions and help you achieve your goals.