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Bullish Dragonfly Doji

How to identify a Bullish Dragonfly Doji Candlestick Pattern

A Bullish Dragonfly Doji Pattern is one candle pattern that appears in a downtrend. Bullish Dragonfly Doji Candlestick Pattern
  • The open, high, and close prices are equal or very close to each other.
  • The candle has a long lower shadow.

Bullish Dragonfly Doji Candlestick Pattern Reliability

A Dragonfly Doji candlestick pattern is usually considered as a reversal candlestick pattern that appears in both uptrend and downtrend. According to our research, a Dragonfly Doji pattern appears more often in a downtrend and has an above average Gain/Loss ratio.

Daily Patterns Weekly Patterns
Frequency Above Average Low
Reversal in downtrend 26% 47%
Reversal in downtrend when parent trend is up 39% 90%
Reversal in downtrend when parent trend is down 22% 29%
Avg. Gain/Loss Ratio in Downtrend 1.88 4.28

Market Sentiment

A long lower shadow indicates that a market sentiment sharply changed. A Dragonfly Doji pattern appears when a price moves significantly lower, but it can not hold. The low price attracts more buyers, and a market sentiment changes sharply from bearish to bullish.

Bullish Dragonfly Doji Trading Tips and Techniques

Usually bullish Dragonfly Doji traders wait for the next day bullish candle as a confirmation of the trend reversal before opening a new position. According to our research, a bullish next candle that closes above the Dragonfly Doji closing price increases the reliability of the reversal and increases the Gain/Loss Ratio for daily and weekly patterns. The next day gap up increases a pattern reliability and profitability, and it can be used as a reversal confirmation as well.

The following factors can improve a pattern reliability and profitability:

  • Oversold momentum technical indicators.
  • A price closer to the Lower Bollinger Band.
  • A price is below 20, 50, and 100 Day Moving Averages.
  • A bearish candle preceding a Dragonfly Doji for both daily and weekly patterns. The bigger is a real body of the preceding bearish candle the greater is the effect.
  • A Doji candle gap down from the pervious candle close price.
  • A longer Doji candle shadow.

Bullish Dragonfly Doji Examples

Example #1: Daily downtrend reversal signal

The following image shows a chart of The Williams Companies, Inc. (WMB) that formed a daily Bullish Dragonfly Doji pattern on May 16th, 2005 as a daily downtrend reversal signal.

WMB: The Williams Companies, Inc.
Bullish Dragonfly Doji Candlestick Pattern
Bullish Dragonfly Doji Candlestick Pattern


The Candlestick/SAR technique generates the following trading signals:
May 16th, 2005:
  • Buy on market open at $16.25.
  • Set stop-loss at $15.62 (the pattern low).
June 21st, 2005:
  • Sell at $19.15.
  • Gain: 17.85% in 25 business days.

Example #3: Weekly downtrend reversal signal.

The following image shows a weekly Bullish Dragonfly Doji pattern that formed between May 3 and May 14, 2021 on a chart of Synopsys, Inc. (SNPS). The pattern signaled a weekly downtrend reversal and a beginning of a new weekly rising trend.

SNPS: Synopsys, Inc.
Bullish Dragonfly Doji Candlestick Pattern
Bullish Dragonfly Doji Candlestick Pattern


The Candlestick/SAR technique generated the following trading signals:
May 17, 2021:
  • Buy on market open at $236.5.
  • Set stop-loss at $225.02 (the pattern low).
September 22, 2021:
  • Sell at $315.267.
  • Gain: 33.3% in 90 business days.
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Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.