Dragonfly doji
The candlestick pattern
dragonfly doji is a formation that is not frequently, but when it
happens it often presages a turnaround in prices as it shows that
prices dipped but then recovered to opening levels.
Dragonfly doji has the
open, high and close are equal and the low creates a long lower
shadow. We have that Dragonfly is a candlestick looks like a "T"
with a long lower shadow and no upper shadow. Dragon fly fly doji
shows that sellers control trading and drive prices lower during the
session.
But, by the end of the
session, buyerss are able to overturn the prices high to the level of
the opening.
Why we consider dragonfly
as a pattern of indecision in the market?
Because pattern dragonfly
doji depends on previous price action and future confirmation of the
forecast.. The long lower shadow indicates a buying pressure, but the
low shows that many sellers still crontrol the market. After a
downtrend, long black candlestick or at support, a dragonfly doji
could indicate a potential bullish reversal or bottom. After a
uptrend, long white candlestick or at resistance, the long lower
shadow could foreshadow a potential bearish reversal or top. Bearish
or bullish confirmation is required for both conditions.
We agree with the
interpretation that dragonfly doji is a indecision pattern.
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