A Dragonfly Doji is a single candlestick pattern that is a type of doji in which the candle's wick (or shadow) is much longer than the body. During the candle time period, the large wick represents a large trading range, and the small body represents the open and closing prices being very close together. It is formed when the candle's open, close, and high prices are very close or the same, while intraday trading moved far from the open but reversed back to close near where it began, which is also near or the day's high.

A dragonfly doji is a candlestick pattern in financial trading that forms when the opening and closing prices of a security are at or very near the high of the trading session, with a long lower shadow and little to no upper shadow. Its appearance resembles that of a dragonfly, hence the name. This pattern suggests a potential reversal in market sentiment. It indicates that despite some selling pressure during the session, buyers were able to push the price back up to the opening level, signaling indecision or a possible shift from bearish to bullish momentum. Traders often interpret the dragonfly doji as a signal to pay attention to potential changes in the market direction, especially when it occurs after a downtrend.