The morning doji star candlestick pattern is similar to the morning star candlestick pattern, except the second candle is a doji:
General Identification & Interpretation
Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes morning doji star patterns with the following characteristics:
Typical characteristics
First candle shows strong bearish activity with an extended red body
Second candle shows gap down day (doji)
Third candle shows strong bullish activity, closing within the body of the first candle
Examples of use as a trading indicator
Potential bullish reversal signal after a downtrend
Support level near the lows of this pattern
Other interpretations
If there is a gap between the doji and both the first and third candles, this pattern forms an abandoned baby bottom candlestick pattern.
More for beginners
Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!
