A evening star is a bearish candlestick pattern. It consists of three candles. It is a uptrend reversal pattern. Evening Star pattern is a candlestick pattern that appears at the end of the uptrend and signals that a downtrend is going to take place. Evening Star Candlestick Pattern
There are three types of Star.
- Morning Star
- Evening Star
- Shooting Star
Today we are going to discuss evening star.
Table of Contents
Evening Star Candlestick Pattern
There must be an uptrend before the chart becomes an evening star. Then you should see a bullish candle. The next candle should be a small body candle.
At the same time, this gap should also be open. This small body candle can be bearish or it can be bullish. The next candle should be bearish. Simultaneously this gap down should be open.
Difference Between Morning Star and Evening Star
Morning Star
There should be a downtrend before the Morning Star pattern is formed. After that you will see a Bearish candle. The next candle will open the gap down. Who will have a small body.
A small body candle can be bearish or bullish. The next candle will be a bullish candle which will open the gap. In this way you can identify Morning Star.
Evening Star
There must be an uptrend before the chart becomes an evening star. Then you should see a bullish candle. The next candle should be a small body candle.
At the same time, this gap should also be open. This small body candle can be bearish or it can be bullish. The next candle should be bearish. Simultaneously this gap down should be open.
Trade Setup – Evening Star Pattern
As soon as you see the evening star pattern on the chart. You have to wait for the breakdown of the low of the bullish candle.
After the breakdown of the low of the Bullish candle, you can make your position in the market. You should place your stop loss above the high of the small body candle.
Example 1 – Evening Star
Some examples are shown on the chart to explain the evening star pattern. With the help of these examples, you will get a lot of help in understanding the evening star pattern.
Example 2 – Evening Star
Read More
- Morning Star Candlestick Pattern
- Long Legged Doji Candlestick Pattern
- Dragonfly Doji Candlestick Pattern
- Gravestone Doji Candlestick Pattern
- VWAP Indicator Explained
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Evening Star
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