A Dragonfly Doji is a type of single Japanese candlestick pattern formed when the high, open, and close prices are the same. It signals a potential reversal. The candle ends up with a tall lower shadow and no body. It is usually seen at the bottom of a downtrend. The Dragonfly Doji is bullish.
To identify a Dragonfly Doji, look for the following criteria:
The Dragonfly has a long lower shadow but no upper shadow, and it resembles the capital letter T.
The candlestick is formed when the opening and the closing prices are at the highest of the session