A doji whose open, high and close sit together at the top, with a long lower wick. Sellers were completely rejected by the close.
How to identify it
- Open and close at or very near the high
- Long lower wick, no upper wick
- Most meaningful after a decline or at support
Entry
Buy above the dragonfly high.
Stop loss
Below the tip of the lower wick.
Target
The nearest resistance or a 2R move.
Invalidation
A close below the midpoint of the wick.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your dragonfly doji trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.