Bullish Morning Doji Star Pattern
BULLISH MORNING DOJI STAR PATTERN (BMDSP)
The bears are in control… but not for long
1. Market is on a downtrend;
2. Day 1 has a long black stick;
3. On Day 2, there is a Doji that gaps in the direction of the previous downtrend; and
4. The white stick on Day 3 confirms the reversal.
The BMDSP is composed of a long black stick followed by a Doji, which gaps down to form a Doji Star. Then there is a third white stick with a closing that is well into Day 1’s black body. The BMDSP is a meaningful bottom pattern.
The black body while the market goes down may imply that the bears are in control. Then a Doji appears showing the declining capacity of the sellers to drive the market lower. The bull’s ascendancy on Day 3 is confirmed by the strong white body.
1. The Doji may be more than one, two or three
2. The gaps of the Dojis are not important
3. The pattern’s reliability is high, but a confirmation is suggested (through a white candlestick with a higher close or a gap-up).