Bearish Doji star: identifying early hesitation at the top of an uptrend

The bearish Doji star is a two-candle reversal pattern that appears after an uptrend. A long bullish candle is followed by a Doji that opens above the first candle's body. The Doji shows that, after a strong rise, buyers and sellers have reached a standoff, which may mean the uptrend is losing strength.

What does a bearish Doji star look like?

The pattern forms over two consecutive candles:

• First candle: A long bullish (white or green) candle that continues the existing uptrend.
• Second candle: A Doji, with its open and close at almost the same price, whose body gaps above the body of the first candle.

The gap only needs to be between the bodies. The shadows of the Doji can overlap with the first candle's upper shadow. The shadows of the Doji are usually short, so the Doji looks like a small cross sitting above the first candle.

What does the pattern tell you?

The first candle shows that buyers are in control and willing to pay higher prices. The second candle opens higher still, which suggests the rise is continuing. During that session, though, buyers cannot push the price any further, and the session closes where it opened.

This sudden loss of momentum is the warning. After a series of strong bullish candles, a Doji shows that demand and supply are now in balance. If sellers take over in the following sessions, the uptrend may reverse.

How reliable is the bearish Doji star?

The bearish Doji star is an early warning rather than a complete reversal signal, because it does not include a bearish candle. Traders usually look for extra evidence before acting on it:

• Prior trend: The pattern only has meaning after a clear uptrend.
• Confirmation: A bearish candle after the Doji, ideally one that closes well into the body of the first candle, adds weight to the reversal.
• Volume: Higher volume on the confirming candle suggests stronger selling.
• Context: A pattern that forms near a resistance level or in overbought conditions, for example on the RSI, carries more weight.

How does the Doji star differ from the Evening Doji star?

The bearish Doji star is the first two candles of the Evening Doji star. The Evening Doji star adds a third candle: a long bearish candle that closes deep into the body of the first candle. That third candle supplies the confirmation that the Doji star lacks. If the Doji is separated from the candles on both sides by full gaps, including the shadows, the three-candle pattern becomes a bearish Abandoned baby.

What are the limitations of the pattern?

Like any candlestick pattern, the bearish Doji star describes what has happened, not what will happen. A Doji in an uptrend often turns out to be a short pause, after which the rise continues. The pattern also depends on a gap between the bodies. In markets that trade around the clock, such as crypto and forex, one session's close is usually the next session's open, so these gaps are rare. Traders often place a stop-loss above the high of the Doji to limit losses if the reversal fails.

How to find the bearish Doji star on TradingView

TradingView can detect this pattern for you on any chart:

• Built-in indicator: Open Indicators and search for Doji star (bearish). The indicator marks each occurrence on the chart.
• All candlestick patterns at once: Add the All candlestick patterns indicator to see every supported pattern on one chart and choose which ones to display in its settings.
• Trend filter: In the indicator settings, choose how the prior trend is detected (based on SMA 50, or SMA 50 and SMA 200), or turn trend detection off.
• Alerts: Create an alert on the indicator to get notified when a new pattern forms.

Understanding the bearish Doji star

The bearish Doji star is a two-candle pattern made up of a long bullish candle and a Doji whose body gaps above it. It signals that an uptrend may be losing strength and could reverse. Because it does not include a bearish candle, traders usually wait for confirmation from the next candles, volume, and other indicators before acting on it.