Investor Glossary-dragonfly dojiInvestor Glossary-dragonfly dojiInvestor Glossary-dragonfly dojiInvestor Glossary-dragonfly dojiInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Dragonfly Doji

The HTML to link to this page
 

A dragonfly doji is a variation on the doji candlestick with a long lower shadow and no upper shadow, such that it resembles a capital "T." The trading pattern that creates a dragonfly doji proceeds with the price of a security opening at the high of the day, selling off to a low, and then recovering back to the high. Depending on the trend that precedes it, a dragonfly doji can either send a bullish signal or a bearish signal. For example, a bullish reversal is possible if a dragonfly doji manifests during a downtrend; the sell-off and recovery pattern of a dragonfly doji suggests a recognition by traders that the security was oversold and has begun to attract buyers. Similarly, a bearish reversal is possible if a dragonfly doji occurs during an uptrend; the sell-off and recovery pattern of the dragonfly doji suggests sellers have begun to show interest, and buyers are no longer strong enough to push a security to new highs. Although a dragonfly doji is considered a moderately reliable signal, traders need to observe the direction of trading action the next day for confirmation.



Rate this Dragonfly Doji definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, balance sheet, current ratio, implied volatility, ex-dividend, APR, open position, reverse mortgage, deferred revenue, real GDP, wholly-owned subsidiary, inflation, Zero Cost Collar, Key Rate Duration, average price per share, VIX, limit order, labor relations, command economy, quality assurance, LIBOR, debt service coverage, FTSE, phantom income, 1031 exchange, ex-dividend date, per diem, stock split, stock market close, minority interest, cancelled check, covered put, dividends payable, 1035 exchange, class C shares, diluted share, required rate of return, margin rate, retained earnings, EBITDA, FICO score, 144a, deferred tax, risk management, option premium, annual return, 401a, irrevocable trust, liquidity ratio


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use