DragonflyDojiPatterns

🐲Understanding the Dragonfly Doji Pattern in Trading

📌 What is a Dragonfly Doji?
The Dragonfly Doji is a unique single-candle pattern that shows indecision in the market — but with a bullish twist.

It often appears after a downtrend and can be a bullish reversal signal.

🕯️ How the Candle Looks:
•No real body (Open and Close prices are the same or very close).

•Very long lower wick (tail).

•No upper wick or it's very tiny.

•It looks like a “T” shape — just like a dragonfly!

📉 ➡️ 📈 What It Means:
•The market opened, dropped hard during the session (sellers in control).

•But then buyers stepped in and pushed the price back up to the open level.

•This shows that sellers are weakening, and buyers are gaining strength.

✅ Beginner Tips:
•Stronger when it appears after a downtrend.

•Look for confirmation: the next candle should be a green bullish candle for higher reliability.

•Commonly used with support zones or oversold RSI indicators.

📊 Simple Example:
Let’s say Bitcoin is falling.
Then one day:

•It opens at $60,000.

•Drops to $58,000 during the day.

•But closes back at $60,000.

•This forms a Dragonfly Doji — buyers stepped in, and the downtrend might reverse soon.
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