Bearish Doji Star Pattern on a Live Gold Chart

What it shows

Each one gets a red label marked DS over the high of the doji.

How Pravex works it out

1. For the bearish doji star, a body is the distance between open and close, and long or small is judged against a 14-candle exponential average of those bodies: above it is long, below it is small. The first 13 candles have no average yet, so no bearish doji star is found there.
2. The bearish doji star starts with a rising candle (close above open) whose body is long, above the average.
3. The second candle must be a doji. The bearish doji star rule calls a candle a doji when its body is no more than 5% of its high-to-low range.
4. The bottom of the doji’s body must be above the first candle’s close, the top of its body. Only the bodies have to gap; the shadows may overlap.
5. An uptrend is required for the bearish doji star, measured on the first candle, and with the default it comes down to one comparison: is that close above the average of the last 50 closes?

Settings

Setting	Default	What changing it does
Trend check	SMA50	Decides what counts as an uptrend before the bearish doji star. By default one close is read against the 50-candle average; adding the 200-candle average asks for a longer trend before the bearish doji star, and switching the check off ignores the trend completely.
Label colour	Red (#F23645)	The fill of the DS label over the high of each candle where the bearish doji star pattern is complete; its white text needs a colour it reads well on.

How traders read it

This is the first two candles of an evening doji star. Strong buying, a higher open, then a candle that goes nowhere. It warns that the rise has met sellers at the new prices. The usual next step is to wait for a falling candle that closes back into the first body.

If you hold a long position, the doji’s low is a sensible place to tighten a stop. A close above the doji’s high says the buyers are still there.

When it misleads

On spot gold the next candle usually opens at about the last close, so the gap between the bodies is often only a few cents, or there is none. That makes labels rare and the gap itself weak evidence. Quiet hours after a big candle produce dojis easily. For the bearish doji star, one close above the 50-candle average counts as an uptrend. The candle still forming is checked again on every update, so a bearish doji star label can show up on it and vanish before the close; only a bearish doji star label on a closed candle stays.

Questions and answers

What is a bearish doji star?

Two candles after a rise: a long rising candle, then a doji whose body sits above the first candle’s close.

What confirms a bearish doji star?

A falling candle next that closes well into the first candle’s body. In Pravex that third candle, closing at or below the middle of the first body, makes an evening doji star.

How is it different from a bearish harami cross?

In a harami cross the doji sits inside the first body. In a doji star it sits above it.

Related: Doji Star - Bullish, Evening Doji Star - Bearish, Harami Cross - Bearish, All Candlestick Patterns, every indicator.