The Evening Star candlestick pattern is a powerful bearish candlestick reversal pattern.
It consists of three candles. It occurs in an uptrend siginfying that the end of the uptrend is near and the beginning of the downtrend is in process.
Evening Star Candlestick Pattern
For the candlestick reversal pattern to be confirmed as the Evening Star Candlestick Pattern following criteria must be fulfilled:
The opposite is true for the case of the morning star candlestick pattern.
The text book perfect the Evening Star is formed infrequently.
Sine the candlestick analysis is a subjective notion, the details on the formation of candlestick reversal pattern as explained above might change from one trader to another from their viewpoint of experience and knowledge base.
For example, the second day candle could be a single indecision candle like doji or spinning top or combinations of more than one indecision candles.
Even though we stated three candles required for the formation of the evening star candlestick pattern, some traders might as well consider two or even more Spinning Tops or the Doji for the middle candle.