Morning Doji Star

It is so named because just like the planet mercury appears just before the sun rise, this pattern appears just before price rise and it contains a doji.

Formation
This formation consists of three candles.

First day is black candle.

Second day is a doji below the black candle.

Third day is a long white candle, above the doji.

Study the chart given below.

On the next day, though the stock opens below the low of the previous day's real body, the supply decreases or the demand increases, so that the momentum of the falling market decreases. The stock closes at the opening. This creates a doji.

On the third day, with the bulls dominating, the market opens above the doji, rises up and closes high to create a long white candle.

This is a clear indication of the bullish reversal of the market.


Counter part of this pattern in a candle chart is Evening Doji Star.

The second day candle may be a spinning top, which results in Morning Star.