The Dragonfly Doji is a significant candlestick pattern in trading, indicating potential trend reversals, especially at market bottoms. It features a small body at the upper end of the trading range with a long lower shadow and little to no upper shadow, resembling a "T." This pattern suggests strong rejection of lower prices, signaling bullish momentum. Traders often confirm the reversal with subsequent green candles or higher volume. The Dragonfly Doji is most reliable after a downtrend, highlighting buying pressure. Proper risk management is essential, as false signals can occur. Combining it with other indicators enhances accuracy in predicting upward reversals.

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