Candlestick Patterns · Bullish
Dragonfly Doji
Open and close sit at the high, with a long lower shadow.
Price was sold down and came back to finish where it opened, at the top of the candle. After a decline, traders watch it as a possible reversal clue.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Open and close are nearly equal and near the high.
- The lower shadow is long.
- There is little or no upper shadow.
Market context
After a decline it resembles a hammer. In the middle of a range it is less meaningful.
Entry example
An example entry is a later close above the dragonfly high.
Stop-loss example
An example stop is below the long lower shadow.
Target example
An example target is the prior swing high.
Common mistakes
- Treating the long wick as confirmation before the next candle agrees.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.