Butterfly Doji

In case of Butterfly Doji pattern, the opening and closing prices of The Doji pattern are at the upper end of the candle.

Butterfly Doji is also called as Dragonfly Doji or Umbrella Doji.

Butterfly Doji is considered as a very bullish pattern when it appears in the downtrend. This formation is a combination of doji and Hammer candlestick pattern when it appears in the downtrend. It becomes a bullish reversal pattern in that case.

The long lower shadow shows a strong demand and the strength of the bulls. The price fell after the opening session but bulls managed to evaporate the losses and closed the session where it opened.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

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