A dragonfly doji candlestick formation is the opposite of gravestone doji as the open, high, and close are near the same price in the upper half of the candle.
It can occur in both an uptrend and a downtrend, but it is considered to be stronger when it takes place at the bottom of the downtrend.
As you can see from the picture, a dragonfly doji looks very similar to a hanging man or a hammer candlestick pattern.
However, the same difference applies to the case of the gravestone doji and the shooting star, as doji has no body but only wicks, while the hanging man and hammer have a short body at the top of the candle.
Both patterns send the same message - the bears may lose the momentum soon and a reversal may be on the cards as the bears failed to force a close near the candle’s low.
You can check all types of doji candlesticks on MetaTrader 4
and witness yourself how they impact the price action.