Morning Doji Star In Sensex - 14th Jul 09

Sensex made a Morning Doji Star in daily charts as marked in the above chart. The Morning Doji Star is a possible early indication of the trend change. This can be taken as change in trend by confirming with other indicators.

Ideally this pattern forms at the market bottoms at the end of the bear run or at significant retracements. As volumes are not available in Sensex so I am considering the Nifty futures volumes with this pattern. Nifty Futures volumes are not surging in todays up move of 4.2% in Nifty Futures. One must be carefull with existing shorts and adjust stops accordingly and may take swing-term longs based on other entry confirmation (indicators, lower-time frame patterns etc)