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Nikita (SEBI RA)

8th Sep · SEBI-Registered Analyst

Doji Star – Indecision + Possible Reversal

📊 The Doji Star is a 2-candle pattern signaling indecision. ✅ Formation: 1️⃣ First candle – Strong bullish or bearish candle. 2️⃣ Second candle – Doji opening with gap (above or below). ✅ Meaning: Momentum weakens, market shows hesitation → possible reversal. 📌 Example: Nifty rallies to 22,000, forms long green, next day gap-up opens 22,150 but closes as Doji → Doji Star → reversal risk. 🧠 Rule: Needs 3rd candle confirmation to trade confidently.

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