Dragonfly Doji

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