This Bullish Indicator Could Signal Trend Reversal: Dragonfly Doji
Crypto took a nosedive on Monday and has been declining steadily since April highs.
In fact, most altcoins are now down 70% from those April levels, and some are even lower than post FTX collapse!
But we've just noticed a candlestick pattern that could suggest that market is poised to reverse trends, at least temporarily.
It's called Dragonfly Doji.
Dragonfly Doji can signal a bullish trend reversal.
It consists of two down (red) candles, one doji candle with long downwick, followed by a up (green) candle.
The long downwick candle indicates that after sellers pushed down the price, buyers stepped up and bought it back up almost where it started the day. And that buying followed through the following day (green up candle).
This signal worked perfectly in early July.
Will it repeat again? Notice also that after the Dragonfly Doji appeared, the price still had a few bumps before it took off higher. And that could be what's ahead of us. A bounce, some retracements, but eventually a steady rise higher. We're seeing this candlestick pattern in many charts.
We're seeing this candlestick pattern in many charts:
