As of 10/29/2020
  Indus: 26,659 +139.16 +0.5%  
  Trans: 11,184 +237.90 +2.2%  
  Utils: 868 +2.32 +0.3%  
  Nasdaq: 11,186 +180.72 +1.6%  
  S&P 500: 3,310 +39.08 +1.2%  
YTD
-6.6%  
 +2.6%  
-1.3%  
 +24.7%  
 +2.5%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 10/23/20
As of 10/29/2020
  Indus: 26,659 +139.16 +0.5%  
  Trans: 11,184 +237.90 +2.2%  
  Utils: 868 +2.32 +0.3%  
  Nasdaq: 11,186 +180.72 +1.6%  
  S&P 500: 3,310 +39.08 +1.2%  
YTD
-6.6%  
 +2.6%  
-1.3%  
 +24.7%  
 +2.5%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 10/23/20

Bulkowski on the Southern Doji Candle Pattern

 

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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-- Tom Bulkowski

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The southern doji is supposed to act as a bullish reversal candlestick, and it does, but just 52% of the time. I call that "near random." If you found one charging at you while on safari, you would not know which way to turn. Most doji candlesticks that I have studied are just like that: They act randomly.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Southern Doji Candlestick: Important Results

Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 52% of the time
Frequency rank: 8
Overall performance rank: 78
Best percentage meeting price target: 90% (bull market, up breakout)
Best average move in 10 days: 3.51% (bear market, up breakout)
Best 10-day performance rank: 50 (bear market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal southern doji candlestick
Southern Doji

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Southern Doji Candlestick: Discussion

Theory matches the performance found in the field: the southern doji acts as a bullish reversal but only 52% of the time. Based on the frequency rank (8), you will find it often in a historical price trend, but performance after the breakout ranks well down the list of performers: 78. Since I only looked at 103 candlesticks, with 1 being best, the southern doji is not one worth hunting for.

After the breakout, price meets the measure rule target 90% of the time. That means if you add the height to the top of the doji, price will reach it 90% of the time before the trend ends. That is a good score but it only applies to upward breakouts in a bear market. The best average rise is 3.51% over 10 days which I consider poor. Rises of 6% or more get me hot!

Southern Doji Candlestick: Identification Guidelines

CharacteristicDiscussion
Number of candle linesOne.
Price trend leading to the patternDownward.
ConfigurationLook for a doji candlestick (one in which the opening and closing prices are a few pennies from each other) in a downward price trend.

Top of page More

Southern Doji Candlestick: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Southern doji candles that appear within a third of the yearly low perform best -- page 260.
  2. Southern doji candles with shadows taller than the median outperform -- page 261.
  3. Southern doji within a third of the yearly high tend to act as reversals -- page 262.

Southern Doji Candlestick: Example

The southern doji candlestick on the daily scale

Shown is a southern doji (A) on the daily chart. This doji has the opening and closing prices the same and it appears in a downward price trend -- all the ingredients to qualify it as a southern doji. Price reverses trend when it breaks out upward (a close above the top of the doji).

-- Thomas Bulkowski

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See Also

 

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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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