For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Type of Japanese Candle: “Dragonfly Doji”.
Dragonfly Doji
– A Dragonfly Doji has only the Lower Shadow, that is very long, and no Upper Shadow; in fact it has as High, both the Opening Price and Closing Price.
– If it occurs during a Downtrend, especially if near a Low of the Trend, it means a possible bullish reversal.
