![]() This is a strong indication of a reversal but is not guaranteed. ![]() Luckily, Tom Bulkowski has worked on these patterns and his findings are that a morning doji star pattern has a 74% chance of generating a bullish reversal. You will find these candlestick patterns form in lower timeframes much more frequently, because of the limited time traders can battle it out during the trading session.įor example, 1 minute of price action has a significantly lower volume compared to a 1-day chart. Here’s an illustration of the morning doji star How accurate are they? With the intel gathered from this morning doji star candlestick pattern, it is possible for traders to make a trading decision off of it. Thus, they are known as an indecision candlestick. This is part of the Doji family, which is a candlestick where the open and close print at the same price. If you spot one of these patterns, then you have a good idea that the momentum is behind the buyers because of this pattern. We can rationalise this because the candlestick is in three parts, each weakening the sellers power until it finally submits to the buyers. The reason this occurs is that the buyers completely exhaust the sellers out at this swing point. ![]() So this is essentially a bullish reversal pattern and can help traders enter the market at a swing low point of the trend. Okay, time for some theory behind the morning doji star pattern. Conclusion: Morning doji star Pattern, should you trade it? What is a morning doji star pattern?
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