CDLEVENINGDOJISTAR (CDLEVENINGDOJISTAR)

CDLEVENINGDOJISTAR (Evening Doji Star) is a three-candle bearish reversal pattern appearing at uptrend tops. First candle is a long bullish candle continuing the uptrend. Second candle is a Doji that gaps up above the first candle (showing initial strength but resulting in indecision). Third candle is bearish and closes well down into the first candle's body. The penetration parameter (default 0.3 or 30%) controls how far the third candle must penetrate the first candle's body. The Evening Doji Star shows an uptrend gap-up that results in indecision (Doji), followed by bearish confirmation. The Doji acts as a 'star' in the evening sky signaling the end of the bullish 'day.' More reliable than the regular Evening Star due to the Doji's clear indecision.

Evening Doji Star is one of the most reliable bearish reversal patterns, widely used in crypto technical analysis to identify trend tops. The gap-up Doji shows bulls attempted to continue the rally but couldn't establish direction, then bears took control on the third candle. Enter short positions when the third candle closes, especially if it penetrates >30% into the first candle (deeper penetration = stronger signal). Conservative traders wait for the next candle to confirm by closing below the pattern's low. Most effective at resistance levels, after extended rallies, or at psychological price points. The pattern becomes more powerful when: Doji gaps significantly above first candle, third candle has strong volume, penetration exceeds 50%, and RSI is overbought (>70). Combine with MACD bearish crossover and overhead resistance. Highly respected pattern in crypto communities for identifying major tops on daily/weekly timeframes.