Morning Doji Star candlestick pattern

The Morning Doji Star is a three-candlestick pattern that indicates a bullish reversal and the end of a downtrend. This pattern is widely recognized for its reliability in identifying a market bottom and suggesting a potential buying opportunity. Can be considered a reliable pattern.

It indicates a strong bottom formation near a support level. The doji candlestick within the pattern represents market indecision, indicating a potential shift in momentum from bears to bulls. The third candle is bullish, usually with a long body, reflecting that bulls are gaining strength.

The bearish version of this pattern is the Evening Doji Star. Both patterns share a common structure with a doji candlestick in the middle (or as the second candlestick).

Considering that green and red are opposite colors, the patterns have opposite colors in their structure. In the Morning Doji Star pattern, the 1st candlestick is green, the 2nd (doji) and 3rd candlesticks are red, while in the Evening Doji Star pattern it is the opposite: the 1st candlestick is red, the 2nd (doji) and 3rd candlesticks are green. The Evening Doji Star indicates a bearish reversal and the Morning Doji Star indicates a bullish reversal.

Construction

1st

• appears in downtrend
• long red body

2nd

• doji candle (characterized by thin line with small horizontal 'plus' sign or cross in center)
• candlestick body below 1st candlestick body
• high price above 1st candle low price^①

3rd

• green body
• candlestick body above 2nd candlestick body
• candlestick close price above midpoint of 1st candlestick body^②

The Morning Doji Star can be used to time the entry of a long trade. Confirmation of the pattern typically involves observing subsequent candlesticks break above the resistance zone, often marked by at least two bullish candlesticks.

A Stop loss order is usually placed below the lowest price of the patter.