Key Takeaways
Dragonfly Doji
A doji with a long lower shadow and no upper shadow, opening and closing at the high of the session. Strong bullish reversal at bottoms.
Market Psychology
Sellers pushed prices down significantly but buyers fought back completely, closing at the open price - showing buyer strength.
Candle Structure
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Appears at the bottom of a downtrend, signals bullish reversal.
How to Identify
Open, high, and close are at or very near the same price
Long lower shadow (at least 2-3x the body)
No or minimal upper shadow
Appears after a downtrend
Confirmation Signals
Trading Strategy
š„ Entry
Enter long on next candle confirming bullish momentum
š Stop Loss
Place stop below the dragonfly low
šÆ Take Profit
Target resistance or use trailing stop
āļø Risk/Reward
1:2
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Hammer
A single candlestick pattern with a small body at the top and a long lower shadow (at least 2x the body). Appears at the bottom of a downtrend.
Inverted Hammer
A single candlestick with a small body at the bottom and a long upper shadow. Appears at the bottom of a downtrend, signaling potential reversal.
Bullish Engulfing
A two-candle reversal pattern where a large bullish candle completely engulfs the previous bearish candle. One of the most reliable reversal patterns.