Dragonfly Doji Candlestick Pattern — Meaning, Psychology & How to Trade It
7/6/2026
Open, high and close near the top; long lower wick, no upper wick.
In plain words
Price dove deep underwater then shot straight back to the surface by the close.
What the classic books say
The Dragonfly Doji is a 1-candle reversal pattern described in the standard candlestick literature (Steve Nison's work brought these Japanese techniques west). Reference reliability is rated Medium with illustrative behaviour of ~55% when confirmed at support. Stronger at well-tested support zones.
Level by level
Beginner
Sellers dragged price down a lot, but buyers brought it all the way back. A strong sign buyers are waking up.
Intermediate
Full rejection of lower prices intraday — demand reclaimed the entire decline, often near support.
Advanced
A potential bullish reversal when it forms at the base of a downtrend with volume; effectively a hammer with no body.
Trade plan (educational template)
- Confirmation: Bullish follow-through candle.
- Invalidation: Close below the wick low.
- Size the trade with the Position-Size and Risk-Reward calculators.
Common beginner mistakes
- Confusing with gravestone doji
- Skipping confirmation
Practise it now
- ▶ Build the Dragonfly Doji live in the Candlestick Playground
- 📖 Full lesson with quiz in the Learning Hub
- 🎯 Test yourself in the Daily Challenge
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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