The Dragonfly Doji and Gravestone Doji are two special forms of the Doji pattern. Unlike the standard Doji with wicks on both sides, these have a wick on only one side โ making them significantly more directional and actionable than a regular Doji.
Dragonfly vs Gravestone Comparison
The Price Story Each Tells
| Pattern | Intraday Story | Conclusion |
|---|---|---|
| Dragonfly Doji | Price fell sharply intraday โ sellers pushed hard. But buyers absorbed everything and pushed price back to the open by close. | Sellers exhausted. Buyers strong. Reversal likely. |
| Gravestone Doji | Price rallied sharply intraday โ buyers pushed hard. But sellers absorbed everything and pushed price back to the open by close. | Buyers exhausted. Sellers strong. Reversal likely. |
Trading the Dragonfly Doji
Bullish Setup โ Dragonfly at Support:
Confirmation: Next candle closes bullishly above the Dragonfly open
Entry: Open of the candle after confirmation
Stop Loss: Below the Dragonfly low (the tip of the long wick)
Target: Previous swing high
Best at: 200-day SMA, Fibonacci 61.8%, round number support on NIFTY
Confirmation: Next candle closes bullishly above the Dragonfly open
Entry: Open of the candle after confirmation
Stop Loss: Below the Dragonfly low (the tip of the long wick)
Target: Previous swing high
Best at: 200-day SMA, Fibonacci 61.8%, round number support on NIFTY
Trading the Gravestone Doji
Bearish Setup โ Gravestone at Resistance:
Confirmation: Next candle closes bearishly below the Gravestone open
Entry: Short on confirmation candle close
Stop Loss: Above the Gravestone high (the tip of the long wick)
Target: Previous swing low
Best at: ATH, Fibonacci extensions, upper Bollinger Band on daily chart
Confirmation: Next candle closes bearishly below the Gravestone open
Entry: Short on confirmation candle close
Stop Loss: Above the Gravestone high (the tip of the long wick)
Target: Previous swing low
Best at: ATH, Fibonacci extensions, upper Bollinger Band on daily chart
Dragonfly Doji vs Hammer
Both have long lower wicks. The key difference:
- Dragonfly Doji โ open exactly equals close (or within 1โ2 ticks). No visible body.
- Hammer โ has a visible body. Open and close are different. Body in upper third.
- Both are bullish reversal signals. Dragonfly Doji is the stronger signal due to complete price rejection.
A Dragonfly Doji on the NIFTY 50 daily chart at a major support that has held multiple times is one of the highest-probability single-candle setups on NSE. When the long lower wick represents 50+ NIFTY points of rejection, institutions are clearly defending that level.
