Definition

 

Bullish Doji Star could be a candle with short body, a Spinning Top, a Highwave, or even a Doji. It needs to have a downward gap between that day and the previous day.

  • Trend: Reversal
  • Expected trend: Bullish
  • Previous trend: Bearish
  • Reliability: High
  • Type: Bullish
  • Number: 2

Recognition

  • The market is in a downward trend.
  • The first day is a long black candle.
  • The second day is a candle with short body, a Spinning Top, a Highwave, or even a Doji with a downward gap between that day and the long black candle.
  • The shadows of the second day’s candle are not long.

Interpretation

In the inclining trend, the first day is still characterised by sales. On the next day the trading range is narrow, making the short position owners unsure. This pattern signals a possible reversal. A higher opening or a white candle on the third day means an actual reversal with high reliability. The formation can only give short-term signals. A buying signal is above the Doji’s trading range.

Important factors

To make sure the trend is continued, a confirmation on the third day is needed. The confirmation could come from a white candle with an upward gap or a higher closing price.