Doji Star

There are two kinds of standard Doji Stars: Evening Star and Morning Star.

An Evening Star is gapped above after the long candlestick body during an uptrend market; while for the Morning Star, it is gapped below after the long candlestick body during a downtrend market.

A Doji star is likely a sign to show that the current trend is going to change to another opposite trend. So, it is considered as a reversal sign indicates the current trend is likely to be end. The Doji Morning Star somehow is a sign of lowest bottom while a Doji Evening Star is a sign of the highest top.

A trader should have waited for the chart pattern to be completed before he or she takes the next move. The chart’s pattern only can be considered as a complete chart when a candlestick body occurs after the short Doji. Although Doji is a reversal sign, but it could not stands well on its own. The candlestick body occurs after the short Doji would help much in determine the market trend. When there is a red body occurs after the Doji, it indicates the trend is in downtrend and if the candlestick body after the Doji is green, then it shows that the bulls is taking over the control. So, there should be a gap before the candlestick body turns up.

A Doji is known as an ‘abandoned baby’ or ‘island’ as it is isolated from the main flow candlestick body patterns.