𝗖𝗮𝗻𝗱𝗹𝗲𝘀𝘁𝗶𝗰𝗸 𝗣𝗮𝘁𝘁𝗲𝗿𝗻

( 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗲𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 )
Evening Star Candlestick Pattern

𝗗𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻:

1. First Candle Bullish: The first candlestick is a large bullish green candle, reflecting strong buying pressure and continued upward momentum.

2. Second Candle Indecision: The second candlestick is small and can be bullish or bearish, often resembling a doji or spinning top. This candle shows indecision in the market, as the buying momentum slows.

3. Third Candle Bearish: The third candlestick is a large bearish red candle that opens below the small second candle and closes near or below the midpoint of the first bullish candle, confirming the reversal.

𝗦𝗶𝗴𝗻𝗮𝗹

:The Evening Star pattern signals that the upward trend is losing steam and that sellers are starting to gain control. Once the third candle forms, traders interpret it as a bearish reversal and may consider entering short positions.

𝗧𝗿𝗲𝗻𝗱

• Uptrend → Evening Star forms → Potential reversal into a downtrend.

• The pattern is more reliable when confirmed by additional bearish candles following the pattern or other technical indicators, such as resistance levels or overbought conditions.

𝗞𝗲𝘆 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀

• The second candle indecision often opens with a gap up but fails to maintain the bullish momentum, indicating weakness.

• The third candle needs to be a strong bearish candle to confirm the pattern.

𝗘𝘅𝗮𝗺𝗽𝗹𝗲

• Uptrend → First large bullish candle → Small indecision candle → Large bearish candle → Trend reversal downtrend likely to follow.