Dragonfly Doji

Anatomy

A dragonfly doji opens, highs, and closes at virtually the same price near the top, with a long lower wick and essentially no upper wick. It looks like a hammer with no body at all.

Market psychology

Sellers drove price sharply lower intraday, but buyers reclaimed the entire decline and pushed the close back to the open. It is a strong rejection of lower prices when it lands at support.

When it matters

A dragonfly after a downtrend at support is a bullish reversal hint, similar to a hammer but with even less body. Mid-trend or in a range it is just indecision. Confirmation on the next candle still matters.

Common beginner mistakes

• Reading it as bullish anywhere; without a downtrend and a support level it is just a low-conviction doji.
• Skipping confirmation — the long lower wick is encouraging but a follow-through green candle is what validates the turn.

Frequently asked questions

Is a dragonfly doji the same as a hammer?

Very close. Both have a long lower wick rejecting lows. The dragonfly has essentially no body (open ≈ close ≈ high), while a hammer has a small but visible body. Both lean bullish at support after a downtrend.

How reliable is a dragonfly doji?

Moderately, and only with context. At a tested support after a clear downtrend with a confirming candle it is a useful signal; in a choppy range it is noise.