Definition:Get the highest rated stock from Americanbulls for this pattern >>>
A short candlestick, a spinning top, a highwave or a doji following a white candlestick with an upside
gap during an uptrend, is the Bearish (Doji) Star Pattern.
Recognition Criteria:
1. Market is characterized by uptrend.
2. We see a long white candlestick in 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 the second day.
4. The shadows of the short candlestick, spinning top, highwave or doji are not long.
Explanation:
Bulls control the market in a strong uptrend. The appearance
of a Bearish (Doji) Star Pattern in such an uptrend shows
that buyers are now losing the control and market is
moving to a deadlock between buyers and sellers. This
deadlock or balance between buyers and sellers may result
because of a diminition in the buying force or an increase
in the selling force. Whatever the reason is, the star
tells us that the strength of uptrend is now dissipating
and the market is increasingly vulnerable to a setback.
Important Factors:
A confirmation on the third day is required to convincingly
show that the uptrend has reversed. This confirmation
may be in the form of a black candlestick, a large gap
down or a lower close on the next trading 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.
