The Ultimate Guide to Dragonfly Doji Candlestick Patterns

Last updated: February 7, 2024

Dragonfly Doji Pattern

The dragonfly doji pattern occurs when a stock's opening and closing prices are the same as the high for the day:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes dragonfly doji patterns with the following characteristics:

Typical characteristics

• The candle has a long lower shadow
• The candle's opening and closing prices are the same as the high for the day

Examples of use as a trading indicator

• This candle is a bullish indicator as the market was able to recover from lower prices throughout the trading day

Other interpretations

• Similar to a hammer pattern, except instead of a small real body at the top of the candle, the opening and closing prices are the same

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!