Doji Star

In a downtrend or within a pullback of an uptrend, the market gaps down but does not continue its downward movement. Instead enough bulls step up to bring supply and demand back into equilibrium and the stock churns in place. The halt of the downtrend signifies the possibility of a reversal, so confirmation is needed with a strong third day (preferably with volume behind it).

A long black day is followed by a Doji that gaps in the direction of the trend. The shadows of the Doji should not be long.

Pattern: reversal
Reliability: moderate