Dragonfly Doji is BULLISH REVERSAL pattern and generate buy forex trading signals
1. No (or a VERY small) real body
2. The open and close are at or very close to the
top of the candle, leaving no upper shadow
3. A long lower shadow
4. Market is in a downtrend
Getting inside the pattern
What we have here is a Doji in a downtrending market with an open and close at the top
end of the day’s range. This means the market sold off from the first trade, then recovered
these losses to end the session right back where it started.
Dragonfly Doji simple profitable forex trading strategy
A Dragonfly Doji or Umbrella Doji is generally a strong reversal pattern in a
downtrending market. It is a Doji with an open and close at the top of the
candlestick, leaving the real body looking like a line across the top of a vertical
line, hence the rather descriptive names. These Doji look like an Umbrella or a
Dragonfly. Not a pattern to be ignored.