In the Dragonfly Doji, the stock open and close at the day’s high. This pattern forms at the peak of an uptrend. It forms when the supply and demand forces are at equilibrium.
The Doji patterns are used to identify trends. The patterns are used as entry and exit points. When the Doji pattern forms at the support level, it can be used as an entry point. When the Doji pattern forms at a resistance level, it can be used as an exit point. It’s advisable to use a combination of patterns and indicators to determine your trading strategy.
View more information: https://marketrealist.com/2014/12/understanding-doji-candlestick-pattern-technical-analysis/