Dragonfly Doji

In technical analysis, a Dragonfly Doji is one of a family of Doji candlestick shapes that all share several common traits.

Like all Dojis, the Dragonfly Doji’s open and close prices are almost identical, meaning that it has no real candlestick body.

However, the Dragonfly Doji differs from the standard Doji shape by having a long lower wick. This tells you that even though the open and close prices were the same, there were periods of heavy selling and dip-buying throughout the candle’s duration.

Dragonflies are read as a potential signal of a reversal either to the upside or the downside. In a downward trending market, this type of Doji can be a potential signal that buyers are reentering the market.

In an upward trending market, it can be a sign that more sell volume is starting to show up.

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