As stock prices never remain static, it is important to know the factors that explain their rise and fall. The bearish dragonfly doji is a Japanese candlestick that helps to understand stock market uncertainties. In the following lines you will get some details about this Japanese candlestick.
The dragonfly doji candlestick pattern
The time scale must be adapted according to the data (daily, half-yearly, monthly). This is done according to the study cycle. The analysis may be for the long term or for the short term. For example, for traders working on cycles of 20 to 30 minutes, this is the perfect type of method for stock market decision making.
It is very popular among traders today for short term trading. For a better interpretation of the prices, one element needs to be considered,i was reading this. Indeed, the candlestick pattern is formed by candles which are a composition of shadows and bodies.
What is to be taken into account here is the size of the latter. For example, if a candle has a larger body, this indicates a high pressure. When the pressures are high, the shadows will become small.
Dragonfly doji graphic
When you see a green or white body, there is a good chance that the chart representation indicates a bull market. This is the type of candlestick that is called yang (yo-sen). As for a bear market, a black or red body is used to indicate this bear market candlestick.
This type of candlestick is called ying (in-sen). The special feature of a doji chart is the identical opening and closing price. For traders, this is a pattern that sows doubt and explains a certain uncertainty. All doji chart patterns have their own interpretation, whether they are at the top or the bottom.