Dragonfly Doji
A Doji with a long lower wick and no upper wick — open, high, and close near the same level — a bullish rejection signal.
The Dragonfly Doji opens near the high, plunges to a session low, then recovers fully to close near the open. The result is a cross with a long lower wick and almost no upper wick or body.
It shows that sellers initially overwhelmed buyers, but buyers absorbed all the selling and pushed price back up — a strong intra-session rejection of lower prices. At the bottom of a downtrend or at a support level, this is one of the more reliable bullish reversal signals in the single-candle toolkit.
Example
After a sharp three-day sell-off, a Dragonfly Doji forms right on the 200-day moving average. Buyers stepped in aggressively on the dip; a bullish candle the next day confirms the reversal.
Related Terms
Doji
A candle with virtually no real body — open and close are equal or near-equal — signalling market indecision.
BeginnerHammer
A single candle with a small body near the top and a long lower wick — buyers rejected a sharp intra-session sell-off — a bullish reversal signal.
Beginner