Doji Star
Another two-session reversal signal is the doji-star. The bullish version starts out with a black session, then a downside gap, and a doji. This should be located at the bottom of a downtrend and, when confirmed, signals a coming reversal and uptrend.
Key Point
The doji star consists of two sessions separated by a gap in between. It is a strong reversal indicator due to the gap.
The bearish version starts out with a white session, then an upside gap and a doji. Look for this reversal signal at the top of an uptrend, signaling reversal and a new downtrend. Both varieties of this signal are highlighted in Figure 5.18.
Figure 5.18 ...
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