Collapsing Doji Star

collapsing doji star

For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).

Let’s analyse now the following Candlestick Pattern: “Collapsing Doji Star”.

Collapsing Doji Star

 

collapsing doji star

– Normally it should be a signal of reversal of the current Trend.

– Is a rare Pattern.

– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.

– The First Candle is white.

– Then there is a Gap Down.

– The Second Candle is a Doji Candle.

– The Third Candle is black, that gaps down from the Second Candle.

– The Shadows of the Three Candles should not overlap, so that the Doji Candle remains “surrounded” by the Two Gaps Down.

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