A Dragonfly Doji shows sellers pushed price down hard, then buyers bought it all back.
On the daily chart, altFINS Signals Summary shows 230 assets with a fresh Dragonfly Doji. Only 1 has the stricter Perfect Dragonfly setup.
BTC and ETH both printed a new Dragonfly Doji this week.
This Bullish Indicator Could Signal Trend Reversal
The candle that marked ETH’s August bottom
Look at ETH on the chart below. In mid-August it printed a Dragonfly Doji (labelled DDP) near $1,900. Within two weeks ETH was above $2,500, and by late September it reached about $2,800.
BTC did the same in September. A Dragonfly Doji near $81K came right before a quick push to about $87K.
This week, both BTC and ETH printed a fresh Dragonfly Doji: BTC near $82K and ETH near $2,450.
What a Dragonfly Doji tells you
The candle has a long lower wick, almost no body, and opens and closes near the high. During that session, sellers pushed price sharply lower. Then buyers stepped in and pulled it all the way back to the open.
That shows demand is coming in. After a downtrend, it often marks where the selling runs out.
Dragonfly Doji = bullish (buy) reversal signal. Read the tutorial →
Gravestone Doji = the exact opposite, a bearish (sell) reversal signal. Read the tutorial →
Not all Dragonflies are equal: the “Perfect” setup
A plain Dragonfly Doji is common. Right now there are 230 on the daily chart. On its own, it can be noise.
The signal gets much stronger with context:
At least two red candles before it (sellers in control)
The Dragonfly Doji (sellers fail)
A green candle after it (buyers confirm the reversal)
We call this a Perfect Dragonfly. It’s rare: only 1 asset has one on the daily chart today.
You can find ''Dragonfly Doji'' and ''Perfect Dragonfly Doji'' in the Pre-Set Filters on the Screener:
A Dragonfly Doji shows that sellers pushed the price sharply lower, but buyers stepped in and pulled it back up to the open, showing strong bullish demand.
When it appears after a downtrend and is followed by a confirming green candle, it signals a potential bullish reversal - especially if it forms near a Support level.
TIP: don't ever miss signals and set up an alert.
Join our VIP telegram group to get the best trade signals and expert tips.
You can scan thousands of crypto assets to find over 30 candlestick patterns. Read tutorial.
Bonus: Free $10K Prop Trading Challenge
For a limited time, every qualifying altFINS Yearly and Lifetime plan comes at 50% off - and includes a complimentary $10,000 Prop Trading Challenge. No separate fee. No catch. This is typically priced at $129 by our partner.
Pass the challenge and you get access to a funded trading account, with $10K in capital. You keep 70–90% of profit you generate on that $10K. If you earn 20% profit, you get to keep $1,400- $1,800 of that! You don't risk your own capital.
If you’re an existing member with Essential and Premium Annual plan or any Lifetime plan, email us requesting $10K challenge at [email protected]
If you’re not a VIP, consider taking advantage of this special offer.
The $10K Prop Trading Challenge is typically priced at $129 but it’s now bundled for free in our Annual (Essential and Premium) plans and all Lifetime plans.
Learn more here.
Building a trading algo, app, AI Agent, or dashboard?
Take advantage of altFINS’ API + MCP server to accelerate your development, even with simple vibe coding with Claude integration. You don’t have to be a programmer anymore to create trading apps and algos.
altFINS’ API is the only API that includes 150+ indicators and 130+ signal types already pre-calculated so you don’t waste time or credits when developing, backtesting, etc.
Learn more here.