Evening
Star
Description
This
reversal pattern is one of the major 12 candlestick patterns.
After
an uptrend, a reversal is signaled by a long black candlestick.
First,
there is a white candlestick at the end of an uptrend. The next day gaps up
however with a small trading range. This is the “star of formation”. The third
day the black candlestick indicates that the bears have taken over, causing a
close at least half way down the first day’s white candlestick. The strongest
signal would be if there was a gap before and after the star day.
The
longer the white and black candlesticks, the stronger the pattern.
Market
Opinion
Bearish.
Pattern
