Morning Doji StarConstruction:First candlea candle in a...

Morning Doji Star

Construction:

• First candle
  • a candle in a downtrend
  • red body
• Second candle
  • a doji candle
  • a doji body below the previous candle body
  • the high price above the previous candle low price
• Third candle
  • green body
  • candle body above the previous candle body
  • the closing price above the midpoint of the first candle body

Technically the second candle body wasn't below the previous candle body (it was the same level).

The way I look at the MS is as follows:
The doji is a sign of indecision, therefore ignore it.

The red day
O 32.5 H 32.5 L 30.5 C 31

The green day
O 32 H 35 L 32 C 35

Therefore no gap to worry about from a TA perspective. I would argue that the bigger the gap on the green day the better, because buyers rejected the low strongly. You also need to take VWAP and Vol into account.

The red day

VWAP 31.3 Vol 334K

The green day

VWAP 34 Vol 615K

Green day VWAP and Vol considerably higher than red day. This shows that lunch money orders aren't artificially inflating the price higher.

TA is about using the balance of probabilities in your favour for entry and exit points. It will never be 100% perfect, the chart/signals will never look 100% perfect. FA can come along at any moment and either crush you or retire you (in a good way), a duster vs a DEG. That's why I always have a LT and a ST/MT holding once the stars have aligned for a particular stock. CNB has been great for me given how late I was to the party in entering at 17. I've managed to cash out 3 bhags whilst retaining my original holdings so it's completely risk free for me from here on in.

I'll always call it as I see it, but out of respect for current holders, I'll use a hold sentiment when PA/TA is looking 50:50 or worse, and use a buy sentiment when PA/TA shows promise for further gains.

GLTAH