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What is an Evening Star
Candlestick Pattern?

The Evening Star candlestick pattern is a major bearish top reversal pattern that occurs during a sustained uptrend. The first candle has a long white real body. The second candle gaps up, but the trading range is small, giving it a small real body. This warns of the potential for a reversal. The third is a black candle that closes below the midpoint of the first day. The deeper this candle moves into the body of the first candle, the more powerful the signal. It is the opposite of the Morning Star candlestick pattern.



Since the third candle retreats deep into the first candle, no other confirmation is needed, but when it bounces off resistance or is accompanied by a sell signal from an indicator, it is much more reliable.When you see this candlestick pattern occur you know its time to sell or short the stock. Leave Evening Star and go back to Japanese Candlestick Charts


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