Dragonfly dojis
This pattern is a single candle pattern with no body. The open, high and close are at the same price. There is a long lower wick.
Unlike neutral and long-legged dojis these patterns do not alert us to uncertainty in the market. They are very similar to hammers and should be considered a bullish reversal pattern if appearing in a downtrend.
Gravestone dojis
These single candle patterns have the same open, low and closing price, with a long upper wick.
They are very similar to a shooting star and should be considered a bearish reversal pattern if appearing in an uptrend.
Example
Key Learning Points
- Dragonfly and gravestone dojis do not tell us anything about uncertainty.
- Dragonfly dojis are similar to hammers and like them should be considered a bullish reversal pattern.
- Gravestone dojis are similar to shooting stars and like them should be considered a bearish reversal pattern.
