The Doji Star candlestick pattern is a key formation in forex trading, often indicating a potential reversal in market trends. It is a two-candlestick pattern that typically occurs at the end of a strong price movement, signalling indecision in the market.

The first candlestick in the Doji Star pattern is a large-bodied candle, representing a strong bullish or bearish trend. The second candlestick is a Doji, characterized by a very small or non-existent body, where the open and close prices are nearly equal. This Doji signifies market indecision, as buyers and sellers are in balance.

The Doji Star pattern can appear as either a Bullish Doji Star (after a downtrend) or a Bearish Doji Star (after an uptrend). For traders, the location of this pattern is critical. It may suggest a stronger likelihood of reversal when it forms at a support or resistance level.

Confirmation is essential for trading the Doji Star. Traders typically wait for the next candlestick to validate the reversal, such as a strong bullish candle following a Bullish Doji Star or a bearish candle after a Bearish Doji Star. Combining this pattern with other indicators or tools enhances its reliability.