This is a three-candlestick pattern signaling a major top reversal. It is composed of a white candlestick followed by a Doji, which characteristically gaps up to form a Doji Star. Then, we have a third black candlestick whose closing is well into the first session’s white real body. This is a meaningful top pattern.
Recognition Criteria
1. The market is characterized by a prevailing uptrend. 2. We see a white candlestick on the first day. 3. Then, we see a Doji on the second day that gaps in the direction of the uptrend. 4. A black candlestick is observed on the third day.
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