As of 04/15/2024
Indus: 37,735 -248.13 -0.7%
Trans: 15,388 -109.77 -0.7%
Utils: 849 -6.15 -0.7%
Nasdaq: 15,885 -290.07 -1.8%
S&P 500: 5,062 -61.59 -1.2%
|
YTD
+0.1%
-3.2%
-3.7%
+5.8%
+6.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/15/2024
Indus: 37,735 -248.13 -0.7%
Trans: 15,388 -109.77 -0.7%
Utils: 849 -6.15 -0.7%
Nasdaq: 15,885 -290.07 -1.8%
S&P 500: 5,062 -61.59 -1.2%
|
YTD
+0.1%
-3.2%
-3.7%
+5.8%
+6.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
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The collapsing doji star is a very rare bird. I found just 16 of them out of 4.7 million candle lines. Thus, the statistics are subject to change and are unreliable. Those that I did find act as a bearish reversal of the upward price trend, ranking 24th. The overall performance is near the bottom of the list, suggesting that the trend after the breakout is dismal. Do not expect price to trend for long.
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Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 63% of the time
Frequency rank: 101
Overall performance rank: 97
Best percentage meeting price target: 60% (bull market, down breakout)
Best average move in 10 days: 7.32% (bull market, up breakout)
Best 10-day performance rank: 24 (bull market, up breakout)
All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Collapsing Doji Star
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As I mentioned in the introduction, the collapsing doji star is rare. If you use the one minute scale, you would have one appear on your screen every 3.3 years. My guess is you would probably be asleep at your keyboard by then and miss it anyway.
The collapsing doji star acts in theory as it does in reality, as a bearish reversal of the upward price trend 63% of the time. However, the frequency rank is 101 out of 103, so you may never find an example. The overall performance is 97th and that is because I could not find any in patterns in a bear market. That hurt the results.
The best average move 10 days after the breakout is a rise of 7.32% in a bull market. I consider moves of 6% or higher to be good ones, so the 6 patterns that qualified did well. That performance gave the candlestick pattern its best 10-day performance rank of 24th.
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a white candle in an upward price trend. Following that, find a doji that gaps below yesterday's low. The last day is a black candle that also gaps below the doji. None of the shadows on the three candles should overlap, so there should be gaps surrounding the doji. |
The chart shows the collapsing doji star circled in red on the daily scale. Price moves up to the start of the collapsing doji star when a white candle appears. Below that is the doji and notice that the shadows of either candle do not overlap. The last day is a black candle and again, the shadows do not overlap so the doji appears to float between the candles on either side of it.
Based on the picture, I would say that the stock during this period probably did not trade often or it split so many times that the price differences became minor, removing the shadows from the candlesticks. Perhaps both occurred.
This collapsing doji star candlestick functions as a reversal of the brief up trend when price breaks out downward. A downward breakout happens when price closes below the bottom of the candle pattern. In this example, the downtrend does not last long before price moves horizontally.
-- Thomas Bulkowski
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