Morning Doji Star



candle
Pattern reversal
Reliability high
 

Identification

A long black day is followed by a Doji that gaps in the direction of the trend. The third day is a white day which closes in the top half of the black day.

Psychology

In a downtrend or during a pullback within an uptrend, the market gaps down but does not continue its downward movement. Instead enough bulls step up to bring supply and demand back into equilibrium and the stock churns in place. This is the bullish Doji Star formation. A subsequent follow through gap up that closes above the midpoint of the black day completes the Morning Doji Star and confirms the reversal.

The bullish Morning Doji Star is similar to the bullish Abandoned Baby and bullish Morning Star.