Evening doji star and morning doji star – strong reversal signals


for example, forex

If the star is a doji (a candle formed when the open and the close occur at the same level or very close to the same level, i.e. it has no body), the «morning doji star» and «evening doji star» form, that are more convincing reversal signals (Figure 1).


Figure 1. Reversal patterns
Figure 1. Reversal patterns

The «Abandoned baby» pattern (refer to Figure 1) forms if:



  • The star is a doji,

  • there is a gap between the doji and the first candle, the shadows mustn’t intercross,

  • there is a gap between the doji and the third candle, the shadows mustn’t intercross as well.


The «abandoned baby» pattern is a more convincing reversal signal than the «evening doji star» and «morning doji star».


Signal Enhancements of the patterns considered earlier:



  • The more the body of the third candle overshadows the body of the first candle the more forceful the pattern.

  • Small volume on the first candle and large volume on the third candle.


+7 (495) 710-76-76
© 1998—2008 «Alpari»

close

Your Personal Area

For alpari.classic enter your account number (a letter and 4 figures) and the code word for the Personal Area.

For alpari.micro account: enter your login (6 figures) and the password for MT.

Open an account!Forgotten your password?