Doji Star Bearish
Pattern: Reversal
Trend: Bearish
Reliability: Moderate
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How to
Identify it
- First day is a long
white day
- Second day is a doji
that gaps in the direction of the previous trend
- The shadows of the
doji should not be long
What it
Means
In an uptrend, the market
builds strength on a long white day and gaps open on the
second day. However, the second day trades within a small
range and closes at or near its open. This scenario
generally shows erosion of confidence in the current trend.
Confirmation of a trend reversal would be a lower open on
the next trading day.
