Dragonfly Doji

Dragonfly Doji

• Direction: Bearish
• Type: Reversal
• Reliability: Moderate


• A very small body with a long lower wick
• The lower wick is at least twice as long as the candlestick body
• No upper wick

After a market in an overall uptrend the sharp sell-off reflected by the Dragonfly suggests the bulls may have lost sway over the market trend.

Despite the fact that market price closes at or near its open/high price reflecting a bull rally in the same day, this candle casts doubt on the markets ability to continue the uptrend.

With bulls losing momentum the pattern can potentially be a signal for further sell offs. Watch for confirmation of the reversal should markets trade bearish the next day.

Dragonfly Doji vs Hanging Man The Bearish Dragonfly Doji Pattern is a rare single candlestick pattern that occurs at the top of an uptrend. It is very similar to the Hanging Man Pattern, except on a Dragonfly Doji the opening and closing prices are nearly identical (no body). When markets manage to close at the same price as they open it suggests more uncertainty about future trend than even a small candle. That makes the Bearish Dragonfly Doji more reliable than a Hanging Man offering a stronger bearish signal.