| In this article we are going use candlestick analysis to | | | | when the market opened. As the bulls pushed the |
| understand why bears are often grumpy when a | | | | price back up to where the market opened, never |
| candlestick known as the dragonfly doji appears on | | | | venturing above this point, the real body is displayed |
| their charts. Before this formation appeared on the | | | | as only a thin line with a long tail underneath, which |
| bear's chart he was most likely in a jovial and upbeat | | | | gives the dragonfly doji it's distinctive name. |
| mood since the market had been in a downtrend | | | | The appearance of the dragonfly doji makes the |
| which bears enjoy more than a stream loaded with | | | | bears uneasy since it reveals that strength is growing |
| sockeye salmon. | | | | among the bulls and a change of trend is possible. If |
| The dragonfly doji chart pattern may signal the end | | | | the change of trend is confirmed the following day |
| of a current downtrend with an announcement from | | | | by the formation of a white candle, bears may need |
| the once weak bulls that they have grown tired of | | | | to seriously consider abandoning their positions and |
| the color red. With this pattern, the market opens | | | | cover their shorts. Nothing upsets a bear more than |
| with the continued downtrend, however as the day | | | | an insect in their honey. |
| wears on, the bulls organize and work in unison | | | | Candlestick analysis is a powerful prediction tool that |
| beating back the bears closing the session almost | | | | has been used for three centuries beginning with rice |
| exactly where it opened. | | | | traders in Japan. Incorporating candlestick analysis into |
| The characteristics of the dragonfly doji are | | | | a trading system could help increase the winning |
| recognizable by the long shadow at the bottom of | | | | percentage of an already established trading system. |
| the candle that represents the sell off that occurred | | | | |