Evening Star candlestick pattern- It is the opposite of the Morning Star. There are many variations of the Evening Star pattern.
Criteria
1. Usually consists of three candles at the top of an uptrend.
2. First candle is a blue candle.
3. Second candle is an indecision candle. There can be 1, 2, 3, or even 4 indecision candles.
4. Third candle is a red candle and should close at least half way down the first blue candle.
5. The longer the blue and red candles the more forceful the reversal.
6. The more indecision of the indecision candle the better probability that a reversal will occur.
7. The further the third red candle closes down into the first blue candle the stronger the reversal.
7. The further the third red candle closes down into the first blue candle the stronger the reversal.
Here are some variations of the evening star pattern:
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Evening Star candlestick pattern |
Evening Star candlestick pattern
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Oleh
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