Definition
Bullish Morning Doji Star consists of three candles and signals the end of an inclining trend. It includes a long black candle followed by a Doji with a gap in the trend’s direction. The third candle closes in the body of the first candle.
- Trend: Reversal
- Expected trend: Bullish
- Previous trend: Bearish
- Reliability: High
- Type: Bullish
- Number: 3
Recognition
- The market is in a downward trend.
- The first day is a long black candle.
- The second day is a Doji with a gap in the trend’s direction.
- The third day is a white candle, confirming the reversal.
Interpretation
The black candle strengthens the inclining trend on the market. The second day’s Doji reflects the decreasing number of the sellers. The strong white candle on the third day signals the bullish nature of the market. In an ideal Bullish Morning Doji Star formation, there is a gap both before and after the Doji candle. The second gap is not common, but the formation is still strong without that.
Important factors
The number of the Dojis can be one, two, or three. The gap of the Doji is not important. The formation is highly reliable, but a confirmation is necessary (may come from a white candle with higher closing price or gap).
