Bearish Dragonfly Doji Pattern
BEARISH DRAGONFLY DOJI PATTERN (BDDP)
closing is very near the opening
Characteristics:
1. Market is on an uptrend;
2. There is then a Doji at the upper end of the trading range. It is located above the trend; and
3. The lower shadow of the Doji is extremely long. There is no upper shadow.
Brief Explanation:
This is a single candlestick pattern. It occurs at a market top or during an uptrend. The BDDP is similar to the Bearish Hanging Man pattern.
The market is bullish and this is characterized by an uptrend. Then there is a price action distinguished by a sharp-sell off when the market opens. The prices then move down, going to a level that is much lower than the opening price. At the closing hours, we then see a rally, and it closes very near the opening price.
Notes:
1. If the market opens lower the next day, there may be a lot of longs eager to sell their positions
2. The BDDP is more bearish than the Bearish Hanging Man Pattern
3. A confirmation is suggested to check the trend reversal of the next trading day (through a black stick, a large gap down, or a lower close).