Some Common Candlestick Patterns (Part 4.2)
The continuation of 4.1 post
Morning Doji Star
The Morning Doji Star is a bullish reversal pattern that consists of three candlesticks. The first candlestick is bearish, followed by a Doji candlestick (indicating market indecision), and finally, a bullish candlestick that closes near the high of the first candlestick.
Example:
Suppose Stellar (XLM) experiences a downtrend, with the price dropping from $0.30 to $0.25. However, on the third day, a Doji candlestick forms after a bearish candlestick, followed by a bullish candlestick that closes near the high of the first candlestick. This Morning Doji Star pattern suggests a potential reversal in the downtrend.
Evening Doji Star
The Evening Doji Star is the bearish counterpart of the Morning Doji Star pattern and also consists of three candlesticks. The first candlestick is bullish, followed by a Doji candlestick, and finally, a bearish candlestick that closes near the low of the first candlestick.
Example:
Suppose Chainlink (LINK) experiences an uptrend, with the price rising from $20 to $25. However, on the third day, a Doji candlestick forms after a bullish candlestick, followed by a bearish candlestick that closes near the low of the first candlestick. This Evening Doji Star pattern suggests a potential reversal in the uptrend.
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VEIGO (Community Mod)
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