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Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Doji Star
Dragonfly Doji
Downside Gap Three Methods
Downside Tasuki Gap
Engulfing
Evening Doji Star
Evening Star
Falling Three Methods
Gravestone Doji
Hanging Man
Harami
Harami Cross
Identical Three Crows
In Neck
Kicking
Meeting Lines
On Neck
Separating Lines
Shooting Star
Side By Side White Lines
Three Black Crows
Three Inside Down
Three Line Strike
Three Outside Down
Thrusting
Tri Star
Two Crows
Upside Gap Two Crows

Evening Doji Star
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Pattern: reversal
Reliability: high

Identification
A long white day is followed by a Doji that gaps in the direction of the trend. The third day is a black day that closes in the bottom half of the white candle.

The Psychology
In an uptrend or within a bounce of a downtrend, the market gaps up but does not continue its upward movement. Instead enough bears step up to bring supply and demand back into equilibrium and the stock churns in place. This is the bearish Doji Star formation. A subsequent follow through gap down that closes below the midpoint of the white day completes the pattern and confirms the reversal.

The bearish Evening Doji Star is similar to the bearish Doji Star, bearish Evening Star, and bearish Abandoned Baby.



We consider this to be a risky trade. ET was rallying on strong volume when it formed a bearish Evening Doji Star formation that ended the uptrend and began a downtrend. We consider this to be a risky trade even though Evening Doji Stars carry a high reliability rating. A safer play would be the formation of this pattern at resistance.

 

 

 

 

 

 

 

 


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