Evening Star is a candlestick pattern. It consists of three candlestick, normally a strong bullish candle followed by small indecisive candle and then a strong bearish candle. The third day candle should be at least half of the first day's candle to have reliable Evening Star candle pattern. Evening Star is exactly opposite of Morning Star Candlestick pattern.
Evening Star is more reliable and most often found on top of the rallies. It shows that on day one the buyers were dominating the session, on day two there was indecisiveness between buyers and sellers. And on day three sellers taking things under control and dragging the price down. Stop loss can be placed above the second day's high.
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| Evening Star |
Evening Star is more reliable and most often found on top of the rallies. It shows that on day one the buyers were dominating the session, on day two there was indecisiveness between buyers and sellers. And on day three sellers taking things under control and dragging the price down. Stop loss can be placed above the second day's high.