Dragonfly Doji Candlestick Pattern - पूरी जानकारी.
How to Trade the Dragonfly Doji Candlestick Pattern.
·
The Dragonfly Doji Candlestick
Pattern: Explained.
·
How to Recognize the Dragonfly Doji
Candlestick Pattern.
·
The Dragonfly Doji Candlestick
Pattern's variations.
·
Trading the Dragonfly Doji
Candlestick Pattern: A Guide.
·
Trading Techniques for the Dragonfly
Doji Candlestick Pattern.
Ø Strategy 1: Retractions on Bare Charts.
Ø Strategy 2: Using Support Levels to Trade the Dragonfly Doji.
Ø Strategy 3: Using Moving Averages to Trade the Dragonfly Doji.
Ø Strategy 4: Using RSI Divergences to Trade the Dragonfly Doji.
Ø Strategy 5: Using Fibonacci to Trade the Dragonfly Doji.
Ø Strategy 6: Using Pivot Points to Trade the Dragonfly Doji.
The Dragonfly Doji Candlestick Pattern: Explained.
The pattern of reversal is bullish.
It usually manifests itself following a drop in price
and indicates a rejection of cheaper prices.
Because we anticipate a bull advance once the
Dragonfly Doji shows up at the proper spot, the pattern is bullish.
It is a reversal pattern since we want to see the
price decline before the Dragonfly Doji shows up, which is also a common
indication that a trend is coming to an end.
The Gravestone Doji candlestick design is replicated
in the Dragonfly Doji pattern as well.
How
to Recognize the Dragonfly Doji Candlestick Pattern.
One candle creates the Dragonfly Doji candlestick pattern.
To recognize the Dragonfly Doji candlestick pattern, follow these steps:
1. There is no body to the candle.
2. It must have a large wick at the bottom.
3. Its wick should be little or absent from the top.
Look at….............................
The Dragonfly Doji Candlestick Pattern's variations.
On your charts, the Dragonfly Doji candlestick pattern can look a little different.
If there is a wick at the top of the candle, it must
be little.
This is how it would appear on your charts:
Trading the Dragonfly Doji Candlestick Pattern: A Guide.
Finding a candle on your charts with the same form is not enough to trade the Dragonfly Doji candlestick pattern.
Explain.
A pattern is legitimate not just because of its shape
but also because of where it appears.
This implies that a shape that appears in multiple
places could signify different things.
The price should first decline, indicating a bearish
move, while trading the Dragonfly Doji.
Following this bearish trend, a Dragonfly Doji indicates a potential upside reversal.
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It's easy: when the candle's high is broken, the
Dragonfly Doji pattern is traded.
Your conservative go-long trigger is there.
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Since things don't always go as planned when trading,
you should also take precautions to keep yourself safe.
And we employ a stop loss for that.
There exist multiple varieties of stop loss
strategies.
The most popular method is to set it using the other
side of the pattern.
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However, hold off on trading the Dragonfly Doji just
yet.
There are also other things to be aware of.
The Dragonfly Doji candlestick pattern should ideally
be traded in conjunction with other technical analysis or indicators to improve
accuracy.
The
Dragonfly Doji pattern can be traded using the following tactics.
Trading Techniques for the Dragonfly Doji Candlestick Pattern.
Strategy 1: Retractions on Bare Charts.
The Dragonfly Doji is an excellent pattern to keep
watch on during an advance in price because it is a bullish reversal pattern.
Simply watch for the Dragonfly Doji to occur once a
pullback has begun.
That frequently signals the beginning of the fresh
leg to the upside and the conclusion of the pullback.
For Example.............................
Strategy 2: Using Support Levels to Trade the Dragonfly Doji.
Levels of support and resistance are excellent sources of price reversals.
We wish to trade the Dragonfly Doji using support levels since we are searching for upward movements.
How does it operate?
· On your charts, indicate the support levels.
· Await a fall in price that reaches the support level.
· Look for a Dragonfly Doji at that level.
· When the price breaks the Dragonfly Doji's peak, buy.
· Assume a move to the upside and set your stop loss and take profit levels.
For Example..............................
Strategy 3: Using Moving Averages to Trade the Dragonfly Doji.
For trading trends, moving averages are excellent trading indicators.
When prices are rising, the strategy here is to trade pullbacks to the moving average.
How does it operate?
· Look for an upward trend where the price exceeds a moving average.
· Await the price dropping to the moving average.
· Determine is a dragonfly doji is visible at the moving average.
· When the price breaks the Dragonfly Doji's peak, buy.
· Determine your take-profit and stop-loss levels and expect one more upward trend.
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Strategy 4: Using RSI Divergences to Trade the Dragonfly Doji.
Compared to the other trading tactics, this is a little different.
The price must first be in a downtrend and making lower highs and lower lows in return for there to be a bullish RSI Divergence.
This is how it operates:
· Look for a downward trend.
· After every leg to the downside, note the lowest points the price hits.
· Compare the price lows and the RSI indicator simultaneously.
· You have identified a divergence when the price is making lower lows and the RSI is making higher lows.
· You now watch for a Dragonfly Doji to show up at a lower low in price that corresponds to a higher low on the RSI.
· When the price breaks the Dragonfly Doji's peak, buy.
· Assume a move to the upside and set your stop loss and take profit levels.
For Example…..................................
Strategy 5: Using Fibonacci to Trade the Dragonfly Doji.
The Fibonacci retracement tool is another well-liked method of trading the Dragonfly Doji candlestick pattern.
Fibonacci illustrates retracement levels, or points at which price tends to regularly reverse.
Different levels are more likely to complement the Dragonfly Doji pattern depending on how strong the trend is. More information about the various Fibonacci retracement levels may be found here.
This is how the tactic operates:
· You desire an upward trend in the price.
· After that, you wait for a decline, which will inevitably occur eventually.
· Using your Fibonacci tool, draw the levels of the move from its low to the high.
· Your waiting period will come when the price hits a Fibonacci level and creates a dragonfly doji.
· When the price breaks the Dragonfly Doji's a high point, buy.
· Assume a move to the upside and set your stop loss and take profit levels.
For Example……………….
Strategy 6: Using Pivot Points to Trade the Dragonfly Doji.
Pivot points are automatically determined levels of resistance and support based on mathematical calculations.
The Daily Pivot Points are the most commonly employed while trading during the day, though the Weekly and monthly are also often used.
Here's how to use pivot points to trade the Dragonfly Doji pattern:
· Turn on your charts' Pivot Points indicator.
· Look for the Pivot Points that are below the price; they usually work as a support.
· While not necessary, it is ideal to see the price on an upward trend.
· Await the price dropping to a Pivot Point level.
· You want to see a Dragonfly Doji pattern at that level, which indicates that the level is being rejected.
· When the price breaks the Dragonfly Doji's peak, buy.
· Assume a move to the upside and set your stop loss and take profit levels.
For Example…………….....
What Is the Dragonfly Doji's Success Rate?
The Dragonfly Doji candlestick pattern has a 60% success rate, according to Thomas N. Bulkowski's Encyclopedia of Candlestick Charts.
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