CDLDRAGONFLYDOJI (CDLDRAGONFLYDOJI)

CDLDRAGONFLYDOJI (Dragonfly Doji) is a specific Doji variant with a distinctive T-shape appearance. The pattern has open, high, and close all at or very near the same price (top of the candle) with a long lower shadow extending downward. The Dragonfly shows that the period opened, sellers pushed price significantly lower creating the long tail, but then buyers aggressively reversed the entire decline to close at or near the open/high. This demonstrates complete rejection of lower prices and strong buying pressure at lower levels. The longer the lower shadow, the more significant the reversal signal. Named 'Dragonfly' because the shape resembles a dragonfly with body at top and tail extending down.

Dragonfly Doji is a bullish reversal signal, especially powerful when appearing at support levels or after downtrends. The long lower shadow shows that sellers attempted to drive prices lower but buyers completely overwhelmed them, suggesting a bottom is forming. Enter long positions when the next candle confirms by closing above the Dragonfly's high, or enter aggressively at the Dragonfly close itself. The pattern is highly reliable at established support zones, round-number psychological levels, or after capitulation selling. Combine with oversold RSI (<30), bullish divergence on MACD, and high volume on the Dragonfly candle showing strong buying interest. In crypto markets, Dragonfly Dojis often mark local or significant bottoms, particularly on higher timeframes (daily, weekly). The pattern is popular and well-recognized, making it a valuable signal for both discretionary and algorithmic crypto traders.