Morning star doji

The Morning Doji Star is a three-candle pattern consisting of a long bearish candle, a bullish or bearish oriented Doji, and then a long bullish candlestick. The Doji may be spaced some distance below the bearish and bullish candlesticks. In other words, the Doji may gap below the long bearish and bullish candles. For this pattern to be valid, the high of the bullish candlestick must be at least up to the halfway point of the bearish candlestick.

Morning Star Doji pattern

The importance of this pattern is in a downtrend. At this time, sellers are holding sway. Then along comes the Doji (the candle that looks like a cross) which represents a period of trade indecision between sellers and buyers. The third candle shows that buyers have taken hold of the market. The higher up the high of the bullish candle is in relation to the body of the bearish candle, the stronger the signal. If the bullish candle is especially long, many traders will simply go long on the open of the next candle as buyers have clearly taken over.

In terms of reliability, the Morning Doji Star is a highly reliable pattern.