Morning Doji Star

Appearance: A tall black (red) body followed by a doji which gaps below the previous body.

Criteria: The Doji must gap below the previous black (red) body (not necessarily the shadow). If the Doji has a small body, the color of the small body is irrelevant. It must be followed by a white (green) candle, the body of which moves well into the level of the first black (red) candle.

Effect: The Doji means that the bears have failed to sustain the drive to lower prices and the downtrend has run out of steam. This is confirmed by a substantial increase in price the following bar.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.