Page 10 - Module 13 japanese Candlesticks
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Module 13 – A-Z of Japanese Candlesticks
Dragonfly Doji
The Dragonfly Doji is a significant bullish reversal candlestick pattern that mainly occurs at the
bottom of downtrends.
The Dragonfly Doji is created when the open, high, and close are the same or about the same price
(Where the open, high, and close are exactly the same price is quite rare). The most important part
of the Dragonfly Doji is the long lower shadow.
The long lower shadow implies that the market tested to find where demand was located and found
it. Bears were able to press prices downward, but an area of support was found at the low of the day
and buying pressure was able to push prices back up to the opening price. Thus, the bearish advance
downward was entirely rejected by the bulls.
Dragonfly Doji Candlestick Chart Example
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