Bullish dragonfly doji candlestick

• Direction: Bullish

• Type: Reversal

• Reliability: Moderate

• Pattern is strongest after an established bearish trend

• A candle forms with a very small to almost nonexistent body with a long lower wick

• The lower wick is at least twice as long as the candlestick body

• Little or no upper wick

In a bearish trending market the dragonfly illustrates an unsustainable sell-off, where price drives up to new lows, but buyers take control of the trend by market close.

Although this formation is a moderate to weak signal, it is a warning for longs that the downtrend is losing momentum and bull may retake the market soon.

Most candlestick analysts will wait to confirm the signal, watching for a blue candle on day two.

• Dragonfly vs. Hanging ManThe Bullish Dragonfly Doji Pattern is a rare single candlestick pattern that occurs at the bottom of downtrend. It is very similar to the Bullish Hammer Pattern, except on a Dragonfly Doji the opening and closing prices are nearly identical (no body).

The Bullish Dragonfly Doji is more reliable than a Bullish Hammer and it tends to be a stronger bullish signal.