WEBVTT

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What is a dragonfly doji? A dragonfly doji is a particular doji where open and closing prices

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are at the top of the session.

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So opening price, closing price and high are the same price.

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Once again there's no need to be super rigid about these rules.

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If the opening and closing prices are not exactly at the top of the session but just a few pips below

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the high, we can still consider it as a dragonfly doji.

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What is really important is the logic of the pattern.

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As you may have noticed, the dragonfly doji has more or less the same shape of a hammer

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and it also appears in a downtrend.

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The only difference is the one regarding the real body of the candlestick,

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but the logic is exactly the same.

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Here we have pound-dollar on a four-hour chart.

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Can you see the Dragon-Fly doji on the chart?

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I leave you just five seconds.

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Ok,

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the Dragon-Fly doji is right here.

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So the price is in a downtrend before our pattern. Sellers are completely in control. With the Dragon-Fly

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doji,

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the market sold off from the very beginning, then recovered the losses to end the session right back where

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it started.

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So by the end of the session the buyers took over and pushed the price up.

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This means that after many sessions dominated by the sellers the price has become attractive enough

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to convince the buyers to take action and buy the couple.

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So the Dragon-Fly doji has exactly the same logic of the hammer, because it contains pretty much the

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same action that you see in a hammer.

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So we will use both of them in the same way during the course.