Evening star
The evening star pattern consists of three candles: a strong bullish candle, a smaller real-body candle that gaps up from the first candle, and a bearish candle that closes below the first candle’s real body. This pattern suggests that the market may have reached the top and is about to reverse to the downside.
When an evening star pattern shows up at the top of an upward trend, it is an indication that the trend is about to end.
How to Identify an Evening Star
Three candlesticks make up the Evening Star, with the candlestick in the middle being a star,
The first candlestick in the Evening Star’s pattern needs to have a big body and be an up candle (either white or green),
The second candlestick, known as the “star,” has a short body and is not in contact with the first candlestick’s body,
The third candle stick must be dark and close to the body of the first candle stick,
The Doji or Spinning Top is a “star” because of the space between the bodies of the two candlesticks,
It is also possible for the star to form inside the first candlestick’s higher shadow,
The star is the first sign of weakness since it shows that purchasers were unable to raise the price to finish significantly higher than the previous period’s closure,
The candlestick following the star confirms this weakness.
