Doji Star Bullish

 

Pattern: Reversal Trend: Bullish Reliability: Moderate

 

How to Identify it

• First day is a long black 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 a downtrend, the market bolsters the bears with a long black 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 the potential for a rally, as many positions have been changed. Confirmation of the trend reversal would be a higher open on the next trading day.