In this article, We learn about "Evening Star ".Let's Go!
The Evening Star is a bearish reversal candlestick pattern consisting of three candles: a large bullish candle, a small real body candle, and a bearish candle.
The Evening Star pattern occurs at the top of an uptrend in price and indicates that the uptrend is nearing its end.
The opposite of the Evening Star pattern is the Morning Star pattern, which is viewed as a bullish reversal candlestick pattern.
To identify the Evening Star pattern, look for the following criteria:
- The Evening Star consists of three candlesticks, with the middle candlestick being a star.
- The first candle in the Evening Star must be an upward candle (white or green) and must have a larger real body.
- The second candle is the "star", which is a short body that does not touch the body of the first candle.
- The gap between the two candlesticks makes the doji or top the "star".
- A star can also form within the upper shadow of the first candlestick.
- asterisk is the first sign of weakness as it indicates that buyers are unable to push the price much higher than the previous period's close.
- This weakness is confirmed by the candlestick behind the star.
- The third candle must be a dark candle with a closing price close to the body of the first candle.
The
meaning
This evening doji star acts as a bearish reversal of the uptrend in price as price rises into the pattern and breaks out to the downside .
A downward breakout occurs when price closes below the bottom of the three-candlestick pattern.
A breakout to the downside is expected as the price on the last candle was already close to the low.
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