Morning doji star - How to use | Complete Technical Analysis

 

Morning doji star

Hello traders,  welcome to tradersgrip . Today I will discuss  in detail about the Morning doji star  candlestick pattern. This is a highly reliable Reversal bullish candlesticks pattern in technical analysis . It means now the bearishness in the market is over and the uptrend is about to begin.

Technical Analysis of  Morning Doji Star candlestick 

Structure of  Morning Doji Star

* The Morning Doji Star candlesticks pattern consists of three candles. The first candle is  Long Bearish or Marubozu  . It is of red colour.

* The second candle is small  doji  . It is form of plus sign .

* The third  candle is  Long bullish  or Marubozu candlestick . It is of green colour.

*  Doji candle lies below the close price of first candle .

 * Third candle open  gapped up from doji  candle and it closes between mid price and open price of  first candle.

* The high of the first candle is  high of this pattern. And low of doji  is called low of  this pattern.

Where is Morning Doji Star formed ?

Formation of Morning doji star

* Morning Doji Star is always formed after a long downtrend  in the chart. It is formed at the Bottom of the chart. After the formation of this pattern, the possibility of bearishness in the market ends. Buying after getting the confirmation will definitely be beneficial.

* Morning Doji Star candle  forms  in every type of market  such as Indian stock market, commodity market, foreign market etc.

* It appears in intraday charts, daily charts, weekly charts and monthly charts. In daily  charts  it works very well.

Where to use it ?

* If you are trading in intraday then watch it in 5 minute ,15 minute and hourly time frame. But it gives good result in hourly time period.

* If you do positional trading then see it in daily chart and monthly chart.

How to use Morning Doji Star Candlestick Pattern ?

Morning doji star - how to use

* Buy only if the new candle closes above the high of this pattern. This is very necessary.

* Volume of doji must be higher than that of first candle. And volume of third candle must be higher than doji  candle.  It indicate that signal is more powerful.

* The stop-loss is to be placed below the low price of this pattern.

Let us understand this in the chart.

Morning doji star in chart

* The Morning Doji Star candle in this chart is formed after a long downtrend and the volume of the candles  must be in increasing order in this pattern.

* Buy when the new candle closes above the high of this pattern.

* The  new candle in this chart has closed above this pattern. This is the right time to trade.

* Put a stop-loss at the bottom of this pattern.

Important Point In trading  analysis  .

*  Doji  lies below the close price of first candle .

 * Third candle open  gapped up from doji  and it closes between mid price and open price of  first candle.

* After the formation of this pattern, one should not buy until the market price crosses its high.

* Volume of second candle must be higher than that of first candle.