Hi BhaiSahib,My favourite candlestick!Bullish Dragonfly Doji◆...

Hi BhaiSahib,

My favourite candlestick!

Bullish Dragonfly Doji

◆ Direction: Bullish
◆ Type: Reversal
◆ Reliability: Moderate
◆ Pattern is strongest after an established bearish trend
◆ A candle forms with a very small to almost nonexistent body with a long lower wick
◆ The lower wick is at least twice as long as the candlestick body
◆ Little or no upper wick

In a bearish trending market the dragonfly illustrates an unsustainable sell-off, where price drives up to new lows, but buyers take control of the trend by market close.

Although this formation is a moderate to weak signal, it is a warning for longs that the downtrend is losing momentum and bull may retake the market soon.

Most candlestick analysts will wait to confirm the signal, watching for a blue candle on day two.

The Bullish Dragonfly Doji Pattern is a rare single candlestick pattern that occurs at the bottom of downtrend. It is very similar to the Bullish Hammer Pattern, except on a Dragonfly Doji the opening and closing prices are nearly identical (no body). The Bullish Dragonfly Doji is more reliable than a Bullish Hammer and it tends to be a stronger bullish signal.

Regarding strength of signal, the more the dragon fly looks like a Doji, the more it reflects buyers taking control of the sell-off, and the strong the bullish reversal signal.

http://www.fxwords.com/b/bullish-dragonfly-doji-candlestick.html


JB