The Bearish Doji Star signals a potential trend reversal. This candlestick pattern is characterized by the first day being a long green up day. The second day is a doji day that gaps above the first day. The shadows on the second day’s doji shouldn’t be excessively long.
The psychology of the Bearish Doji Star is that an uptrend is in full force with a strong first day. All the confidence of the bulls is destroyed when the second day’s gap up closes near its open. Profit takers will quickly appear if the next day opens lower.<< Back to Glossary Index