*Fly bit more in depth on Dragonfly Doji candlestick pattern:* Meaning After a Downtrend: A dragonfly doji can signal that a price rise might happen soon. Meaning After an Uptrend: It may show increased selling pressure, suggesting a possible price decline. Confirmation is Key: The next candle must confirm the direction (up or down) to validate the signal. Rare but Important: This pattern doesn’t appear often, but when it does, it’s a warning that the trend could change. During a Price Advance: A long lower shadow signals sellers took control temporarily, hinting at potential weakness. Confirmation of a bearish signal requires the next candle to close below the dragonfly’s close. During a Price Decline: It shows early selling followed by strong buying pressure, indicating a possible upward move. Confirmation of a bullish signal requires the next candle to close above the dragonfly’s close. Trading the Signal: Traders typically act after the confirmation candle. For bullish setups: Place a stop loss below the dragonfly’s low. For bearish setups: Place a stop loss above the dragonfly’s high. Use with Other Indicators: Combine the dragonfly doji with other technical tools for better reliability. High volume and strong price movement on the confirmation candle make the signal stronger. Context Matters: Look at the overall chart pattern, such as a head and shoulders, for additional clues. This pattern can indicate indecision or a reversal, so always analyze the full picture before trading.