Your Economy (No Politics)

[Bullwinkle]

COMP gap fill with bearish Doji Star?






Doji Star Bearish
Pattern: Reversal
Trend: Bearish
Reliability: Moderate

How to Identify it

First day is a long white day
Second day is a doji that gaps in the direction of the previous trend
The shadows of the doji should not be long

What it Means

In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows erosion of confidence in the current trend. Confirmation of a trend reversal would be a lower open on the next trading day.