Bullish Doji Star Pattern on a Live Gold Chart

What it shows

Each one gets a blue label marked DS under the low of the doji.

How Pravex works it out

1. What counts as long or small for the bullish doji star moves with the market, since the yardstick is a 14-candle exponential average of body sizes, where a body is the distance from open to close, so a quiet stretch lowers it and a busy one raises it.
2. The bullish doji star starts with a falling candle (close below open) whose body is long, above the average.
3. The second candle must be a doji. The bullish doji star rule calls a candle a doji when its body is no more than 5% of its high-to-low range.
4. The top of the doji’s body must be below the first candle’s close, the bottom of its body. Only the bodies have to gap; the shadows may overlap.
5. The downtrend the bullish doji star needs is read from the first candle: by default its close must sit below the 50-candle simple average, and the trend setting can make the bullish doji star test stricter or switch it off.

Settings

Setting	Default	What changing it does
Trend check	SMA50	Decides what counts as a downtrend before the bullish 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 bullish doji star, and switching the check off ignores the trend completely.
Label colour	Blue (#2196F3)	The fill of the DS label under the low of each candle where the bullish doji star pattern is complete; its white text needs a colour it reads well on.

How traders read it

The doji star is the first half of a morning doji star. The long falling candle shows strong selling, the gap lower shows it carried on, and then the doji shows it ran out. Treat it as an alert and wait for a third candle: a strong rising candle that closes into the first body turns it into the full three-candle pattern.

Until then the levels are the doji’s high and low. A close above the high is the first sign that buyers have stepped in. A close under the low means the stall was only a pause.

When it misleads

On spot gold a candle usually opens at about the last close, so the gap between the bodies is often a few cents wide, or does not happen at all. Labels are rare and the gap is seldom meaningful. A doji after a big candle is also common simply because the next hour was quieter. One close under the 50-candle average is all our downtrend test needs. Wait for the close before trusting a bullish doji star label on the latest candle, which is checked on each update and can lose its label.

Questions and answers

What is a bullish doji star?

Two candles after a fall: a long falling candle, then a doji whose body sits below the first candle’s close.

Is a doji star a reversal signal?

It is an early warning. Most readings wait for the next candle; a strong rising one that closes into the first body makes a morning doji star.

Do the shadows have to gap too?

No. In Pravex only the bodies must gap. A full gap including the shadows is the rarer abandoned baby setup.

Related: Doji Star - Bearish, Morning Doji Star - Bullish, Abandoned Baby - Bullish, All Candlestick Patterns, every indicator.