Evening Doji Star

Appearance: A tall white (green) body followed by a doji which gaps above the previous body.

Criteria: The Doji must gap above the previous white (green) body (not necessarily the shadow). If the Doji has a small body the color of the small body is irrelevant. It must be followed by a black (red) candle, the body of which moves well into the level of the first white (green) candle.

Effect: The Doji means that the bulls have failed to sustain the drive to higher prices, and the up-trend has run out of steam. This is confirmed by a substantial decrease in price the following bar.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.