Dragonfly Doji Candlestick on Live Gold

What it shows

Each dragonfly doji gets a blue label marked DD under the candle’s low.

How Pravex works it out

1. The dragonfly doji is one candle. In the dragonfly doji, a doji body is at most 5% of the candle’s range (high minus low), on a candle whose range is above zero.
2. The upper shadow, from the top of the body to the high, may be no more than 5% of the range. With a body that small and almost no upper shadow, the lower shadow is at least 90% of the range by itself.
3. Example numbers, not a live price: high 2,010.0, low 1,995.0, open 2,009.6, close 2,009.8. The range is 15, the body 0.2 and the upper shadow 0.2, both under 5% of the range. It passes.
4. There is no trend input on this pattern, so the code marks the shape wherever it forms, after a fall, after a rise or in a range.

Settings

Setting	Default	What changing it does
Label colour	Blue (#2196F3)	Change it to tell the dragonfly doji apart from other patterns on the same chart. It fills the DD label under the low of the last candle; the text stays white.

How traders read it

Read it like a hammer with a flat body. The deep lower shadow shows prices below were tested and refused within one candle. After a fall, that refusal is the bullish case, and the low of the shadow becomes the level that must hold.

Because the label ignores the trend, it is up to you to check what came before. A dragonfly at the top of a long rise is a different candle: it shows sellers broke through for a while, which reads more like a warning than like strength. The usual check either way is the next close, above the dragonfly’s high for the bullish case.

When it misleads

The pattern has no trend test, so many labels sit in places where the shape means little. A tiny range on a quiet hour gives a dragonfly that is only a flat candle with a small dip. A body of just over 5% of the range turns it into a hammer, or into nothing, though it looks the same at a glance. Wait for the close before trusting a dragonfly doji label on the latest candle, which is checked on each update and can lose its label.

Questions and answers

Is a dragonfly doji bullish?

Pravex labels it bullish, because buyers recovered the whole fall inside the candle. After a long rise the same candle reads as a warning, so where it forms matters.

What is the difference between a dragonfly doji and a hammer?

A hammer has a small real body and needs a fall before it. A dragonfly doji has a body of 5% of the range or less and no trend test in Pravex.

What is the opposite of a dragonfly doji?

The gravestone doji: it opens and closes at the low, with a long upper shadow.

Related: Gravestone Doji - Bearish, Doji, Hammer - Bullish, All Candlestick Patterns, every indicator.