Collapsing Doji Star

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Figure 1. Collapsing Doji Star pattern.

Figure 1. Collapsing Doji Star pattern.

Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: none

Construction:

  • First candle
    • a candle in an uptrend
    • white body
  • Second candle
    • a doji candle
    • the high price below the prior low price
  • Third candle
    • black body
    • the high price below the prior low price

 

The Collapsing Doji Star pattern is a three-line bearish reversal pattern, which appears extremely rarely. Hence, the pattern is not very useful.

The first line is a white candle appearing in an uptrend. The subsequent line is a doji candle (except the Four-Price Doji) that gaps below the prior candle including the shadows. The last, third line, is a black candle that also gaps below the prior candles including the shadows.

The pattern needs to be confirmed on the following candles.

 

Figure 2.

Figure 2. The Collapsing Doji Star is a very rare pattern. In theory, its strength lies in the existence of two downward gaps, after the first and the second line. Such configuration indicates the market weakness.
On the chart, a Collapsing Doji Star is preceded by a price moving sideways. The bulls and the bears are struggling for control of the market. Then the Collapsing Doji Star appears. It is followed by a Falling Window, which confirms the pattern. The market liquidity is low, which is not helping in making a reliable technical analysis.

 

Collapsing Doji Star statistics

Below you can find some Collapsing Doji Star pattern statistics calculated by CandleScanner software.

Pattern name: Collapsing Doji Star
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Collapsing Doji Star): 3
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Collapsing Doji Star): 0.00 %
Average frequency: 745,473.7
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 0 1 0 2
% of
Occurrences
0.00 % 0.00 % 33.33 % 0.00 % 66.67 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 0 1 0 2
% of
Occurrences
0.00 % 0.00 % 33.33 % 0.00 % 66.67 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
HOT 1 5,034.0 1 100.00 % 1 100.00 %
SIG 1 4,644.0 1 100.00 % 1 100.00 %

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