Morning Doji Star Pattern on a Live Gold Chart

What it shows

Each one gets a blue label marked MDS under the low of the third candle.

How Pravex works it out

1. The morning doji star rule never uses a fixed size: a body, open to close, is long when it beats the 14-candle exponential average of bodies and small when it falls short of it.
2. The morning doji star starts with a falling candle (close below open) whose body is long, above the average.
3. The middle candle must be a doji. Doji, for the morning doji star, means a body of 5% of the range or less, high minus low, with a range above zero. The top of its body must be below the first candle’s close.
4. The third candle must be rising and close at or above the middle of the first body, (open + close) ÷ 2.
5. Before the morning doji star counts, the first of the three candles has to show a downtrend, which by default means a close below the 50-candle simple moving average.

Settings

Setting	Default	What changing it does
Trend check	SMA50	How the downtrend before the morning doji star is measured on the first candle: SMA50 compares its close with the 50-candle simple average. The choice that adds SMA200 also needs the 50-candle average below the 200-candle one, so fewer morning doji star labels appear, and the last choice turns the check off.
Label colour	Blue (#2196F3)	Change it to tell the morning doji star apart from other patterns on the same chart. It fills the MDS label under the low of the last candle; the text stays white.

How traders read it

The doji in the middle is a full stop after the selling: a candle that opened lower and ended exactly where it began. Then the third candle shows buyers pushing back to at least the middle of the first drop. It is read as a slightly stronger version of the morning star, because the stall in the middle is complete.

The doji’s low is the usual stop. If the third candle closes above the first candle’s open, the whole drop has been undone and the case is at its strongest.

When it misleads

The doji must open and close below the first candle’s close. On spot gold, where a candle usually opens at about the last close, that gap is small or missing, so the pattern is rare. When it does appear, check the gap’s size against a normal candle before reading much into it. The downtrend test is one close under the 50-candle average. A morning doji star label on the newest candle is provisional: that candle has not closed, and the shape may stop holding before it does.

Questions and answers

What is a morning doji star?

Three candles after a fall: a long falling candle, a doji whose body is below it, and a rising candle that closes at or above the middle of the first body.

Is a morning doji star better than a morning star?

It is often read as a little stronger, because the middle candle shows a complete stall. Both need the third candle to close past the middle of the first.

How is it different from a bullish abandoned baby?

In an abandoned baby the doji’s whole range, shadows included, gaps away from both other candles, and the third candle must be long. A morning doji star only needs the bodies to gap.

Related: Morning Star - Bullish, Evening Doji Star - Bearish, Abandoned Baby - Bullish, Tri-Star - Bullish, every indicator.