Technical Definition
A three-candle bearish reversal pattern where a Doji is gapped above the previous candle and followed by a gapped-down bearish candle, signaling complete buyer exhaustion and a sharp sentiment shift.
Buyers push prices up aggressively, the market completely stalls (Doji), and sellers take control without overlap.
Buyers lose momentum completely.
Market Psychology
Context
Market in a strong uptrend Optimism and greed dominate Buyers are confident
Euphoria
Buyers push prices sharply higher Uptrend looks unstoppable
Stall
Buying pressure disappears Sellers begin matching demand Volatility collapses
Collapse
Sellers step in aggressively Buyers are caught off-guard Sentiment flips sharply bearish
Pattern Anatomy
First Candle (Bullish)
Strong bullish real body, confirms aggressive buying pressure.
Second Candle (Doji – Abandoned)
Gaps up, represents total indecision, isolated from surrounding candles.
Third Candle (Bearish)
Gaps down from Doji, strong bearish body, confirms reversal.
Pattern Rules
Appears after a clear uptrend
Reversal context.
First candle is bullish
Trend connection.
Second candle is a Doji
Indecision.
Gap up between 1st and 2nd candle
Separation.
Gap down between 2nd and 3rd candle
Reversal gap.
Doji has no overlap with surrounding candles
Isolation.
Third candle is strongly bearish
Confirmation.
Signal Confirmation
- Bearish follow-through after the third candle
- Price holding below the bearish candle’s midpoint
- Confluence with resistance zones
- Overbought conditions