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Key Takeaways
- A dragonfly places its small body near the high above a long lower shadow; a gravestone places it near the low below a long upper shadow.
- Measure how far the candle extends from its body and where the close finishes within the range.
- This example uses body ≤ 5%, dominant shadow ≥ 70% and opposite shadow ≤ 10% of a positive range.
- The dragonfly example closes near its high after a decline; its next session closes above $44.20.
- The gravestone example follows a rebound; its next session closes below $46.80.
- Combine the completed shape, preceding trend, price level and chosen confirmation rule to define the setup.
What are dragonfly and gravestone doji?
A dragonfly doji is a doji candle whose open, high and close cluster at the top of the range above a long lower shadow, forming a T shape. A gravestone doji is the inverse: open, low and close cluster at the bottom below a long upper shadow, forming an inverted T. Each finishes near its open after trading much further toward one end of the range.
How to identify a dragonfly or gravestone doji
Real body = |close − open|. Upper shadow = high − max(open, close). Lower shadow = min(open, close) − low.
Divide each length by the positive high-low range. The three ratios add to 100%.
This example requires body at or below 5%, dominant shadow at or above 70% and opposite shadow at or below 10%. Apply the dominant-shadow condition to the lower side for a dragonfly and the upper side for a gravestone. Classify a zero-range four-price doji separately before division.
Formula
For R = high − low > 0: B = |close − open| / R; U = (high − max(open, close)) / R; L = (min(open, close) − low) / R. Example dragonfly: B ≤ 5%, L ≥ 70%, U ≤ 10%. Example gravestone: B ≤ 5%, U ≥ 70%, L ≤ 10%.- high − low is the full period range and must be greater than zero, so a four-price bar is excluded before any ratio is computed.
- A dragonfly clusters open, high, and close at the top of the range; a gravestone clusters open, low, and close at the bottom.
- The example caps the opposite shadow at 10% of range as well as testing the body and dominant shadow.
Dragonfly doji example
A stock declines from about $47 to $44, forms a dragonfly, rebounds and forms a gravestone. The example requires a body ≤ 5%, dominant shadow ≥ 70% and opposite shadow ≤ 10% of range. Its bullish setup activates on the next session’s close above the dragonfly high; its bearish setup activates on the next session’s close below the gravestone low.
- Dragonfly body: |$44.14 − $44.10| = $0.04 on a $44.20 to $42.30 range of $1.90, a 2.1% body ratio
- Dragonfly shadows: lower $44.10 − $42.30 = $1.80, or 94.7% of range; upper $44.20 − $44.14 = $0.06
- Gravestone body: |$46.83 − $46.85| = $0.02 on a $48.60 to $46.80 range of $1.80, a 1.1% body ratio
- Gravestone shadows: upper $48.60 − $46.85 = $1.75, or 97.2% of range; lower $46.83 − $46.80 = $0.03
- Dragonfly confirmation: the next session closes at $45.05, above the $44.20 dragonfly high
- Gravestone confirmation: the next session closes at $45.70, below the $46.80 gravestone low
Both shapes meet all three thresholds. The dragonfly has body 2.1%, lower shadow 94.7% and upper shadow 3.2% of range. The gravestone has body 1.1%, upper shadow 97.2% and lower shadow 1.7%. Under the stated next-close rule, $45.05 confirms above $44.20 and $45.70 confirms below $46.80.
Its $0.04 body is 2.1% of the $1.90 range. The $1.80 lower shadow is 94.7%; the $0.06 upper shadow is 3.2%. It meets all three shape conditions.
The bullish rule in this example requires the next session to close above $44.20. Its $45.05 close completes that condition.
Gravestone doji example
After the rebound, the candle opens at $46.85, reaches $48.60, holds a $46.80 low and closes at $46.83.
Its $0.02 body is 1.1% of the $1.80 range. The $1.75 upper shadow is 97.2%; the $0.03 lower shadow is 1.7%. It also meets all three conditions.
The bearish rule requires the next close below $46.80. The following session closes at $45.70, completing that condition.
Dragonfly vs hammer and gravestone vs shooting star
A Hammer has a small body near the high and traditionally follows a decline. A Shooting Star has a small body near the low and traditionally follows an advance. The doji variants emphasize the equal or near-equal open and close.
Takuri identifies a related long-lower-shadow shape. Definitions can overlap: the displayed dragonfly’s $1.80 lower shadow is 45 times its $0.04 body and follows a decline. A takuri rule requiring a lower shadow at least three times the body and a preceding decline also accepts those two features.
How to trade dragonfly and gravestone doji
Mark the chosen Support or Resistance level and the pattern’s extremes. Specify the confirmation event, subsequent entry, invalidation and target. Calculate position size from the selected entry and stop reference.
On the confirming close above $44.20 or below $46.80, read Options Flow for large calls or puts in the same direction, then price each structure to your target in the Options Profit Calculator.
Limitations of dragonfly and gravestone doji
- Wait for the confirming close after the matching trend. A dragonfly needs a prior decline and a gravestone a prior advance, and the close beyond the candle’s extreme sets the direction.
- State the thresholds in the rule. This page uses 5%, 70% and 10%, other sources use different limits, and the same candle can also qualify as a hammer, takuri or shooting star.
- Fix the interval and session before scanning. The same price move can form a dragonfly on a daily chart and none on an hourly chart, and extended-hours prices can change the range.
- Size from the confirmed entry price. The dragonfly’s confirming close at $45.05 is already above the $44.20 high.
- Plan the stop around the long shadow. It puts the far end of the candle well away from the entry, which widens a stop placed beyond it and shrinks the position for a fixed dollar risk.
Bottom line
Dragonfly and gravestone doji mark a period that traveled far toward one end of its range and closed back near its open. Read them after the matching trend at a chosen level, wait for the confirming close beyond the candle’s extreme, and size the trade from the stop distance.
Clear answers
Frequently Asked Questions
Sources and Further Reading
- Thomas Bulkowski: Dragonfly Doji Candle Pattern
- Thomas Bulkowski: Gravestone Doji Candle Pattern
- Thomas Bulkowski, Investment Candles (Stocks & Commodities 29:5, hosted by Fidelity)
How entries are sourced, calculated and updated: editorial methodology.