Bullish Dragonfly Doji Pattern

The Bullish Dragonfly Doji Pattern is a single candlestick pattern that occurs at the bottom of a downtrend. The Bullish Dragonfly Doji Pattern is very similar to the Bullish Hammer. The distinction between the two is the existence or none of the real body. In case of Bullish Dragonfly Doji Pattern, the opening and closing prices are identical and there is no body. On the other hand the Bullish Hammer has a small real body at the upper end of the trading range.

The market is going southbound or in a downtrend. Then market opens and sells off sharply. However, the sell-off is suddenly stopped and the price reverses direction and start to go up until the closing thus creating a long lower shadow. The failure of the market to continue in the selling side reduces the bearish sentiment.

Even if this pattern has a high reliability still a confirmation of the trend reversal is needed by either a green candlestick, a large gap up or a higher close on the next trading day.

2 Responses to Bullish Dragonfly Doji Pattern

  1. […] begun. Last week the general trend was downward and our last candlestick is a Hammer (looks like a Dragonfly Doji too). Both indicators suggest that the price might […]

  2. […] above that line. Although it was short on making the closing price above the opening, it formed a Dragonfly Doji. But do we have a clear prior trend? For me it looks like a sideways trend so the Dragonfly Doji […]

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