Dragonfly Doji
Definition
Doji with long lower shadow and no upper shadow.
Dragonfly Doji is a bullish candlestick pattern characterized by a small real body near the low of the day, with a long lower wick (shadow) and no upper wick. It signals indecision at the bottom, with buyers stepping in to push the price up.
Dragonfly Dojis matter as they often indicate a potential trend reversal from bearish to bullish. For instance, after a downtrend, if the price forms a Dragonfly Doji, it suggests that sellers are exhausted and buyers are ready to take control, signaling a possible trend change.