- Direction: Bullish
- Type: Reversal
- Reliability: Strong
After an established down trending day-one is a long red day
Day-two is a doji where the open and close are equal.
Day-three is a blue day
Bullish Morning Doji Stars are a rare reversal pattern that offers one of the strongest bullish reversal signals. Morning Star formations are characterized by a continuation of a bearish trend followed by a Doji, reflecting uncertainty in the strength of trend.
Up to day two we actually have a Doji Star formation, a moderate strength bullish pattern. After the day of indecision, the trend reversal is confirmed when a rally creates the large bullish candle. The stronger the move up on day-three, the stronger the reversal signal. Watch for additional bullish price action in the next few days.
1)Morning star doji pattern found on nifty daily chart (17/6/14)
2)Steel Authority Of India(SAIL) (30/6/14)