technical

Doji Star

A Doji Star is a three-candle candlestick pattern used in technical analysis to indicate a potential reversal in price direction. It forms when a long-bodied candle is followed by a Doji that gaps away, and a third candle moves in the opposite direction and closes near the midpoint of the first candle.

Example: After a prolonged downtrend, a Doji Star forms: a long down candle, a Doji gap down on the next day, followed by a long up candle that closes near the high of the first candle.

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