Doji Star

The Morning Doji Star

The Morning Doji Star structure is a special form of the Morning Star model. The main divergence is that the middle candle of the morning doji star is a doji

The first candle of the pattern is always bearish. The second candle has an insignificant or preferable a zero size real body (a doji). The third candle is always bullish. The open and close of the second candle lies below the real body of the first candle but it could overlie with the lower shadow of this candle. The body of the first and third candle is usually long.

 If the high of the second candle (the doji) is below the low of the first candle (the bearish candle) then the formation is called an abandoned baby bottom. This formation rarely occurs.

©      Note: Both Morning and Evening Doji Star patterns generate many false signals. It is important to make sure they are located at the extremes of the chart and also use other technical or fundamental tools to confirm them.

Locating “Doji Star” Creation In The Chart