Doji Star Up and Down (Candlestick Reversal Patterns)

The Doji Star may be both bullish and bearish reversals. In a Bullish Doji Star a long black day develops in a downtrend. This is followed by a Doji Star that opens below the low of the black day and closes at, or around, the level of the open. The shadows of the star should not be long.

The fact that a Doji Star occurs in a downtrend signifies that the bearish sentiment is becoming weaker with traders uncertain of committing to a short position. A subsequent open above the high of the star would cause further short covering.

In a Bearish Doji Star a long white day develops in an uptrend. This is followed by a Doji Star that opens above the high of the white day and closes at, or around, the level of the open. The shadows of the star should not be long.

The fact that a Doji Star occurs in an uptrend signifies that the bullish sentiment is becoming weaker with traders uncertain of committing to a long position. A subsequent open below the low of the star would cause further long covering.