JOIN FBS KLIK HERE
JOIN FBS
Many doji patterns suggest that a turnaround is occurring, and the bearish doji star candlestick pattern is no exception. This pattern generally occurs during an uptrend. The first day appears to be a continuation of that trend, with a tall white candlestick with short wicks or none at all. However, the second day brings a doji that opens above the previous day’s close, wavers throughout the day, then closes at its opening point. The wicks of the doji are not usually very long, and the upper wick is generally markedly shorter than the bottom.
This pattern often means that the bearish trend is about to end. This is the ceiling of the price. The first day seems to be business as usual, but the doji shows that the momentum has been broken. The relatively small range of the day shows that, while the downtrend hasn’t yet began, there is definitely a tug of war between buyers and sellers. The longer bottom wick suggests that, while the day ended where it began, there is a considerable downward pull. The buyers are no longer calling the shots, and they may begin losing ground soon. In other words, this pattern indicates that there will be a bearish reversal in the very near future.
Your Next Move
The bearish doji star is an indicator of change, but only a moderate indicator. Therefore, your next move should be to wait and see, but definitely prepare a plan of action should confirmation of the downturn present itself. While a reversal seems possible and even likely, only time will tell what the future holds. The outcome of the third day should give you a better idea of how to proceed.
Confirmation
The best confirmation of this candlestick pattern is a black candlestick with a low close on the third day of the pattern. This would form either the abandoned baby pattern or the evening doji star, both of which point to an immediate downward reversal. Another sign to look for is a gap down between the second day’s close and the third day’s opening, because the doji of the second day opens with a gap up. If the next day brings another white candlestick and/or a gap up, the doji star was probably just the market taking a breath before continuing its climb. Variations
The most important variation of this pattern is a possible variation in outcome. The bearish doji star generally indicates a bearish reversal is beginning, but sometimes it doesn’t. This pattern can be a continuation pattern, so waiting that third day is important unless other market forces point strongly to an outcome. While a reversal is probable, the continuation is a strong enough possibility that you should not act immediately
Just looking at the doji star makes you think a reversal is coming, and much of the time this is correct. This is a good time to be patient, but remain poised to act. If the market is headed for a downturn, you will be one of the first to know.
JOIN FBS KLIK HERE
Source : candlestickanalysis.com
JOIN FBS
Many doji patterns suggest that a turnaround is occurring, and the bearish doji star candlestick pattern is no exception. This pattern generally occurs during an uptrend. The first day appears to be a continuation of that trend, with a tall white candlestick with short wicks or none at all. However, the second day brings a doji that opens above the previous day’s close, wavers throughout the day, then closes at its opening point. The wicks of the doji are not usually very long, and the upper wick is generally markedly shorter than the bottom.
This pattern often means that the bearish trend is about to end. This is the ceiling of the price. The first day seems to be business as usual, but the doji shows that the momentum has been broken. The relatively small range of the day shows that, while the downtrend hasn’t yet began, there is definitely a tug of war between buyers and sellers. The longer bottom wick suggests that, while the day ended where it began, there is a considerable downward pull. The buyers are no longer calling the shots, and they may begin losing ground soon. In other words, this pattern indicates that there will be a bearish reversal in the very near future.
Your Next Move
The bearish doji star is an indicator of change, but only a moderate indicator. Therefore, your next move should be to wait and see, but definitely prepare a plan of action should confirmation of the downturn present itself. While a reversal seems possible and even likely, only time will tell what the future holds. The outcome of the third day should give you a better idea of how to proceed.
Confirmation
The best confirmation of this candlestick pattern is a black candlestick with a low close on the third day of the pattern. This would form either the abandoned baby pattern or the evening doji star, both of which point to an immediate downward reversal. Another sign to look for is a gap down between the second day’s close and the third day’s opening, because the doji of the second day opens with a gap up. If the next day brings another white candlestick and/or a gap up, the doji star was probably just the market taking a breath before continuing its climb. Variations
The most important variation of this pattern is a possible variation in outcome. The bearish doji star generally indicates a bearish reversal is beginning, but sometimes it doesn’t. This pattern can be a continuation pattern, so waiting that third day is important unless other market forces point strongly to an outcome. While a reversal is probable, the continuation is a strong enough possibility that you should not act immediately
Just looking at the doji star makes you think a reversal is coming, and much of the time this is correct. This is a good time to be patient, but remain poised to act. If the market is headed for a downturn, you will be one of the first to know.
JOIN FBS KLIK HERE
Source : candlestickanalysis.com
