Definition:Get the highest rated stock from Americanbulls for this pattern >>>
Bullish (Doji) Star Pattern is a short candlestick, a spinning top, a highwave or a doji, which gaps from
a long black candlestick during a downtrend.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a long black candlestick on the first day.
3. Then we see a short candlestick, a spinning top, a highwave or a doji, that gaps in the direction of the
previous trend on second day.
4. The shadows of this short candlestick, spinning top, highwave or doji are not long.
Explanation:
Usually a star that follows a long black candlestick
in a downtrend indicates a change in the market environment.
Bears were in control during the downtrend but now a
change is implied by the appearance of a star that shows
that the bulls and the bears are in equilibrium. The
downward energy is dissipating. Things are not favorable
for continuation of a bear market.
Important Factors:
A confirmation of the reversal on the third day is
required. This confirmation of the trend reversal may
be in the form of a white candlestick, a large gap up
or a higher close on the next trading day (third day).
Click on D for Daily and W for Weekly Samples
Disclaimer
The candlestick patterns explained herein are intended
to inform. They come with no warranty of any kind. If you should choose
this information for your investment decisions, you do so at your
own risk. Investing can be a very dangerous venture and it is you
who must assume the entire cost and risk involved in all of your investment
decisions, should you choose to follow this system or use this information.
The information contained on the Candlesticker.com web site is drawn
from sources believed to be factual and reliable, but in no way does
Candlesticker.com represent or guarantee the accuracy or completeness
thereof, nor in providing it, does Candlesticker.com assume any liability.
The information found on the Candlesticker.com web site is protected
by the copyright laws of the United States and may not be copied,
or reproduced in any way without the expressed, written consent of
the editors.
