Evening Star

The Evening Star three day candlestick formation is considered to be a bearish reversal pattern by stock traders.  The Evening Star is similar to the Evening Doji Star except the middle candlestick has a small body instead of a Doji.

Evening Star

The Evening Star three day candlestick formation is considered to be a bearish reversal pattern by stock traders.  The Evening Star is similar to the Evening Doji Star except the middle candlestick has a small body instead of a Doji.

 


Evening Star Identification

The Evening Star candlestick pattern starts during an uptrend with a long body day.  This is followed by a gap-up small body day. The third day opens down with the open near the high for the day.  The third day closes down below the midpoint of the first day, forming another long body day.. 

Evening Star candlestick pattern


Evening Star Interpretation

The first two candles of the Evening Star meekly suggest a loss of bullish momentum. In fact up to day two this formation matches the Bearish Shooting Star weak-to-moderate strength reversal pattern.

Bearish Shooting Stars alone are good signals for sell-offs on day three, but the trend reversal should be confirmed by a downward candlestick the next day.

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