Bearish Doji Star

Business, Legal & Accounting Glossary

Definition: Bearish Doji Star



Full Definition of Bearish Doji Star


The Bearish Doji Star is a double candlestick formation that is viewed by technical analysts as a bearish reversal pattern.

The Bearish Doji Star is a candlestick pattern that forms during an upward trend.  This is what happens in the pattern: following a stretch of bullish trades, a long bullish candlestick occurs; the subsequent candlestick is characterized by a gap opening above the previous close and is a Doji, Spinning Top or other such short candlestick.

The appearance of a Bearish Doji Star candlestick pattern in a strong uptrend indicates that buyers are losing control and the market is deadlocked between buyers and sellers.  The deadlock seen in the Bearish Doji Star may be as a result of diminishing buying pressure or an increase in the selling force. Whatever the reason is, the Bearish Doji Star tells us that the strength of uptrend is now dissipating and the market is vulnerable to a setback.

Traders should wait for a confirmation on the third day before entering a trade in the reverse direction. This confirmation may be a long bearish candlestick or a large gap down.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/bearish-doji-star/
Modern Language Association (MLA):
Bearish Doji Star. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 03, 2020 https://payrollheaven.com/define/bearish-doji-star/.
Chicago Manual of Style (CMS):
Bearish Doji Star. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/bearish-doji-star/ (accessed: December 03, 2020).
American Psychological Association (APA):
Bearish Doji Star. PayrollHeaven.com. Retrieved December 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/bearish-doji-star/

Definition Sources


Definitions for Bearish Doji Star are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March, 2020 | 18 Views.