Dragonfly Doji Trading System

Dragonfly Doji Trading System for MetaTrader 5

Dragonfly Doji Trading System is a price action indicator for MT5 designed to detect reversal candles with long lower rejection and near-equal open and close near the high.

Overview

Dragonfly Doji Trading System detects doji-style reversal structures on completed bars and displays structured trading levels on the chart.

This pattern can be used to identify possible recovery after strong selling pressure when price declines during the bar and then returns to close near the opening level.

All calculations are based on completed bars only.

Detection is non-repainting. Signal values do not change after the bar is closed.

The indicator can draw Entry, Stop Loss, and Take Profit levels directly on the chart and track signal progress after detection.

Detection Logic

The detection model evaluates each completed candle through several structural conditions.

These conditions can include:

Very small body size relative to total range

Long lower shadow relative to the candle range

Minimal upper shadow

Minimum range relative to ATR

Close positioned near the open and high

The indicator is designed to distinguish Dragonfly Doji structures from other doji variants and from standard rejection candles.

Patterns that do not meet the selected structural requirements are ignored.

Quality Evaluation

Each valid pattern can be evaluated through a multi-factor quality model.

The scoring process can include measurements such as:

Doji quality

Lower shadow ratio

Upper shadow restriction

Directional change relative to the previous bar

Range relative to ATR

Relative range behavior

Signals below the selected minimum threshold can be filtered out automatically.

Multiple detection modes are available, including Standard Mode and Strict Mode.

Entry and trade planning

For confirmed setups, the indicator can project breakout levels using pending-style entry logic above the pattern high or below the pattern low, depending on signal direction.

For each valid setup, the indicator can display:

Entry level

Stop Loss level

Up to four Take Profit levels

Risk and reward zones on the chart

Stop Loss can be calculated using a pattern-based method, ATR-based logic, or Donchian Channel reference.

An optional trailing stop based on Donchian logic is also available for users who want dynamic trade management after entry.

Filters and tools

Optional filters are available to reduce unnecessary signals:

Trend Filter

Volume Filter

Session Filter

Volatility Filter

Market Structure Filter

The built-in scanner can monitor multiple symbols and timeframes from a single chart.

The indicator also includes BOS and CHOCH labels, a signal dashboard, alert options, chart themes, statistics tracking, and output buffers for Expert Advisor integration through iCustom().

Recommended use

Recommended timeframes are M15, M30, H1, and H4 for a balance between signal frequency and structural clarity.

The indicator can be applied to Forex pairs, XAUUSD, indices, crypto symbols, and other instruments, depending on broker data quality and symbol characteristics.

Loading sufficient chart history is recommended for more stable structure analysis.

MetaTrader 5 only.

No DLL calls.

No external WebRequest connections.

Important notes

This indicator is a technical analysis tool.

It does not guarantee trading results.

Users should test settings in their own environment and apply appropriate risk management.

Support is available through the product comments section or via MQL5 direct message.