Evening Doji Star
An Evening Doji Star is a three-candle pattern that occurs at the top of an uptrend. It’s similar to the bearish engulfing pattern, but it has a doji as the second candle instead of a real body. This pattern indicates that the bulls were unable to push prices higher and that the bears may be gaining control of the market. If this pattern is confirmed with other technical indicators, it can be a signal to exit a long position or enter a short position
How to Identify an Evening Doji Star Pattern
These characteristics are used to determine if a pattern is an Evening Doji Star:
The first candle should be a tall and white candle with the price trend going upward.
The second candle should be a doji with its body gapping above the first and third candles, Shadows are disregarded.
The third candle is tall and black and it closes at or below the first candle’s midpoint.
Meaning
To identify an Evening Doji Star, you should first look for;
Uptrend; The first candle should be a strong bullish candle.
Indecision; The second candle should be a doji that has a small real body. It can have a small body or no body, but the opening and closing prices must be relatively close to each other.
Downward; The third candle should be a bearish candle that closes below the middle of the first candle’s real body.
