As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
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YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 |
As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
My book,
Encyclopedia of Candlestick Charts
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
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Like its sister, the bearish doji star, the bullish version does not perform in reality as it is supposed to in theory. Theory says that the bullish doji star is a bullish reversal, but my tests show that it acts as a bearish continuation pattern 64% of the time, or almost 2 out of every 3 trades. The 64% number is misleading though. Why? Because a reversal or continuation is dependent on the breakout direction. A breakout occurs when price closes either above the top or below the bottom of the candlestick pattern. With a bullish doji star, price is almost at the low, so a small downward move would signal a continuation of the existing downtrend. That is much easier to achieve than is an upward breakout.
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Theoretical performance: Bullish reversal
Tested performance: Bearish continuation 64% of the time
Frequency rank: 53
Overall performance rank: 49
Best percentage meeting price target: 59% (bull market, up breakout)
Best average move in 10 days: 5.46% (bear market, up breakout)
Best 10-day performance rank: 9 (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. |
Bullish Doji Star
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As I mentioned in the introduction, the bullish doji star acts as a continuation of the existing price trend 64% of the time. This is most likely because price is situated near the bottom of the pattern, making a downward breakout likely. When price does break out, the trend ranks 49th, or mid list, so it is not a star performer either. In other words, do not expect the downward trend to last for long. The frequency rank, at 53, is almost mid way from 1 to 103 candlestick types, so you should be able to located examples of the bullish doji star often.
The best average move 10 days after the breakout is 5.46% after an upward breakout in a bear market. A good move would be 6%, so this comes close. The best performance rank 10 days after the breakout is 9 after an upward breakout in a bull market. That is a very high rating.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Downward |
| Configuration | Look for a tall black candle on the first day followed by a doji (where the opening and closing prices are within pennies of each other) that gaps below the prior candle's body. The shadows can overlap, but the doji's shadows should not be unusually long, whatever that means. |
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
Shown circled in red on the daily chart is a bullish doji star. Even though price climbs for a few days after the candlestick pattern ends, the breakout is still downward, resuming the falling trend already underway. This bullish doji star is not bullish at all, but bearish like most of the bullish doji star patterns.
The first day of the bullish doji star is a tall black candle followed by a doji whose body gaps below the prior body. That means the closing price on the black candle is above the opening price of the doji. The shadows can overlap and they do in this example. The shadow length on the doji is not unusually long, but that is a touchy-feely thing. Clearly they are not like the shadows on a high wave candle or a rickshaw man.
The breakout is downward when price closes below the lowest low posted in the two-day candle, so this one acts as a continuation of the downtrend.
-- Thomas Bulkowski
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