Gapping Down Doji

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Figure 1. Gapping Down Doji pattern.

Figure 1. Gapping Down Doji pattern.

Forecast: bearish continuation
Trend prior to the pattern: downtrend
Opposite pattern: Gapping Up Doji

Construction:

  • a doji candle with at least one shadow
  • pattern's high price has to be lower than the low price of the previous candle (i.e. price gap is required)
  • a candle prior the pattern cannot be a Four-Price Doji

 


This article is devoted to the Gapping Down Doji one-line pattern.

The basic candle of the Gapping Down Doji pattern may be any doji candle except Four-Price Doji. Pattern's high price has to be located below the low price of the previous candle.

The pattern has to appear in a downtrend as only then may predict its continuation. It is recommended to wait for a signal confirmation on the following candle. Especially that the doji candle can be a part of different pattern, such as Bullish Abandoned Baby or Bullish Tri-Star that are bullish reversal patterns.

 

Figure 2.

Figure 2. Figure presents the Gapping Down Doji pattern confirmed by a Long Black Candle occurrence formed at a high trading volume, creating strong resistance area.
We can notice a series of bullish patterns which cannot break the mentioned resistance region that is even strengthened by the second occurrence of Long Black Candle.

 

Figure 3.

Figure 3. This example shows why it is required to wait at least one candle to confirm the prediction of the Gapping Down Doji pattern.
We can see that it becomes a part of the Bullish Engulfing pattern. Then the trendline is broken for one day by the Turn Up pattern.
It is clearly seen that the trading volume accompanying Bullish Engulfing and Turn Up pattern is lower than the average that may indicate that the market is not ready for a successful attack to break the trendline.
Indeed, this is confirmed by the Turn Down pattern occurrence, accompanied by a significantly higher trading volume. The occurrence of Turn Down pattern is confirmed on the following day when the market reaches a new minimum price and the downtrend is continued.

 

Gapping Down Doji statistics

Below you can find some Gapping Down Doji pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Gapping Down Doji
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 (Gapping Down Doji): 580
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Gapping Down Doji): 0.09 %
Average frequency: 3,855.9
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 127 161 93 199
% of
Occurrences
0.00 % 21.90 % 27.76 % 16.03 % 34.31 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 118 142 75 245
% of
Occurrences
0.00 % 20.34 % 24.48 % 12.93 % 42.25 %

 

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
FMC 4 1,258.5 3 75.00 % 4 100.00 %
COG 4 1,258.5 3 75.00 % 3 75.00 %
FOXA 4 1,215.0 3 75.00 % 3 75.00 %
SJM 4 1,258.5 2 50.00 % 3 75.00 %
LM 6 839.0 4 66.66 % 4 66.66 %
R 5 1,006.8 2 40.00 % 3 60.00 %
PVH 5 1,006.8 2 40.00 % 3 60.00 %
OXY 7 719.1 3 42.85 % 4 57.14 %
CBS 4 1,258.5 2 50.00 % 2 50.00 %
PWR 4 1,093.3 2 50.00 % 2 50.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
WEC 4 1,258.5 3 75.00 % 3 75.00 %
MLM 4 1,257.8 4 100.00 % 2 50.00 %
TGT 4 1,258.5 2 50.00 % 2 50.00 %
PVH 5 1,006.8 2 40.00 % 2 40.00 %
STJ 5 1,006.8 2 40.00 % 2 40.00 %
IVZ 7 712.6 2 28.57 % 2 28.57 %
CBS 4 1,258.5 1 25.00 % 1 25.00 %
COG 4 1,258.5 1 25.00 % 1 25.00 %
RTN 4 1,258.5 1 25.00 % 1 25.00 %
SIG 5 928.8 1 20.00 % 1 20.00 %
Pattern name: Gapping Down Doji
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Gapping Down Doji): 135
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Gapping Down Doji): 0.08 %
Average frequency: 4,548.4
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 30 58 23 24
% of
Occurrences
0.00 % 22.22 % 42.96 % 17.04 % 17.78 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 28 50 23 34
% of
Occurrences
0.00 % 20.74 % 37.04 % 17.04 % 25.18 %

 

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
EOG 2 629.0 0 0.00 % 2 100.00 %
F 1 1,258.0 1 100.00 % 1 100.00 %
FE 1 1,258.0 0 0.00 % 1 100.00 %
FIS 1 1,258.0 1 100.00 % 1 100.00 %
GME 1 1,258.0 1 100.00 % 1 100.00 %
HES 1 1,258.0 1 100.00 % 1 100.00 %
HST 1 1,258.0 1 100.00 % 1 100.00 %
IP 1 1,258.0 1 100.00 % 1 100.00 %
CCI 2 629.0 1 50.00 % 1 50.00 %
LM 2 629.0 1 50.00 % 1 50.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
ADM 2 629.0 2 100.00 % 2 100.00 %
BF.B 1 1,258.0 1 100.00 % 1 100.00 %
BHI 1 1,258.0 1 100.00 % 1 100.00 %
CHK 1 1,258.0 1 100.00 % 1 100.00 %
CTAS 1 1,258.0 1 100.00 % 1 100.00 %
CVC 1 1,258.0 1 100.00 % 1 100.00 %
EXPD 1 1,258.0 1 100.00 % 1 100.00 %
GPS 1 1,258.0 1 100.00 % 1 100.00 %
IFF 1 1,258.0 1 100.00 % 1 100.00 %
JCI 1 1,258.0 1 100.00 % 1 100.00 %

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