A "Dragonfly" doji:
Depicts a time period on which prices opened high, sold off, and then returned to the opening price.
Dragonflies are fairly infrequent, but when seen on hourly, 4 hour or higher would consider trading them to the bullish side.
When they do occur, however, they often resolve bullishly (provided the Forex pair is not already overbought as shown by Bollinger bands and indicators such as stochastic).
Things to look for:
1) Dragonfly doji to happen in 1st 8 hours of a new session.
2) First 8 hours of new session is low liquidity and volume (during Tokyo session).
3) For scalping or day trading, I would make sure right pair, right price, right session and right time- for trading any FX pairs.
4) If you catch a pattern within the 1st 8 hours- you may be able to ride the trade thru the end of London session (this is end of all of my trades or earlier).
Example chart trade was set up on 4 hour session with a 1:1.5 risk/reward setup with is great if you are day trading a trade for 8-10 hours. Are you patience?
Depicts a time period on which prices opened high, sold off, and then returned to the opening price.
Dragonflies are fairly infrequent, but when seen on hourly, 4 hour or higher would consider trading them to the bullish side.
When they do occur, however, they often resolve bullishly (provided the Forex pair is not already overbought as shown by Bollinger bands and indicators such as stochastic).
Things to look for:
1) Dragonfly doji to happen in 1st 8 hours of a new session.
2) First 8 hours of new session is low liquidity and volume (during Tokyo session).
3) For scalping or day trading, I would make sure right pair, right price, right session and right time- for trading any FX pairs.
4) If you catch a pattern within the 1st 8 hours- you may be able to ride the trade thru the end of London session (this is end of all of my trades or earlier).
Example chart trade was set up on 4 hour session with a 1:1.5 risk/reward setup with is great if you are day trading a trade for 8-10 hours. Are you patience?