Dragonfly Doji

Dragonfly Doji - Overview

Dragonfly Doji is the bullish counterpart to the gravestone doji, where the open, high, and close are at the high of the day. The dragonfly doji has a higher success rate when the candle forms at a market bottoms. The psychology behind the candle is that the bears pushed the security down to an unsustainable level and the bulls are able to push the security up to its high by the end of the session. The dragonfly doji is similar to the bullish hammer pattern, except for the fact the dragonfly doji has no body. Traders should wait for the high of the candle to be exceeded prior to taking a long position.

Charting Example of Dragonfly Doji

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