Morning Star Doji

Simply take a look at the notes on this image. Price falls, falls, then falls gain.   One the doji cross day we have a high and a low but the open and close are nearly exactly the same.  This is a point of indecision or equilibrium  if you will where the bulls and the bears are battling, and neither is getting anywhere!   Then the next day we get this nice bullish candlestick that marks the beginning of a potentially nice reversal.  Take a look at what transpires here and notice how intuitive  this pattern is.

Once again look at how price was falling and any precursor to a reversal would simply be a but of “slowing down” first.  Hence the “doji” itself.  This should have had you “paying attention” at he very least.  Now the final candlesticks open above the high of the doji was also very bullish – then this thing rocketed up to take out almost completely the last two days in one nice move.

Now imagine if you will the criteria or components that would make this bot a LOW RISK and HIGH ODDS set up.  What would be a part of this pattern that could make this low risk and high odds to the point that we could get into a trade and out of it with a healthy profit?

I’ll give you a few hints….

1. Any significant support.

2. Any strong Fibonacci levels / zones.

3. Any strong moving average support.

4. Strong compliance from a major stock index. (If this is stocks)

5. Additionally overextended downward price action to this point would be nice.

 

This is just a sample of what might make this thing provide us with the edge we require to enter a trade with a very high level of expectancy.  Now for the good stuff.  Lets put some of this together and identify trades that are practically guaranteed to provide us with an unlimited supply of golden opportunity trades!