EVENING STAR

evening star candles on chart :-

What is EVENING STAR CANDLESTICK PATTERN ?

The Evening Star candle stick pattern is a bearish reversal candlestick pattern that indicates a recession in the market.

This candlestick pattern is formed on resistance, it is a triple candle stick pattern, so this candle stick pattern is formed from three candles and color is important in it, the first candle is a big bullish green candle. The second candle doji which can be of any type, red or green, the third candle after this is a bearish red candle which shows a sign of recession in the market.

EVENING STAR CANDLESTICK PATTERN IDENTIFICATION ?

Color is very important in the evening star candlestick pattern. The order of colors in this triple evening star candlestick pattern should be as follows

First candle: – Green
Second. :- Green and Red
Third candle: – Red

Identification of Evening Star:-
1st Candle: big bullish candle
2nd Candle: – Doji Candle
3rd Candle :- Bearish Candle

all triple candle stick pattern pdf :-https://smartstockadda.com/category/candle-stick-eg/triple-candle-pattern-eg/

attention to in EVENING STAR CANDLESTICK PATTERN ?

In this candle pattern, the order and open closing of the three candles are very important, so please keep them in mind which will be as follows: –

• If this candlestick pattern is formed at resistance, it is considered strong.
• In this, the first candle should be a big bullish candle which continuously tries to show the up trend going on in the market.
• The second candle should be gap-up (above) open from the first candle.
• The second candle can be a Doji candle which can be bullish or bearish in any kind of red or green color.

• The third candle will be a bearish red colored candle.
• The third candle should be gap-down open from the second candle and its closing point should be between the low and middle of the first candle.

Features of EVENING STAR CANDLESTICK PATTERN ?

This is a bearish reversal candle stick pattern.

• Evening Star belongs to the category of triple candlestick patterns.
• It is formed by the formation of three candles.
• It is formed at the end of a continuous bullish trend of a stock, after which the stock starts going bearish in the market.
• It is formed at the top during an up-trend.
• This indicates a down-trend in the market.
• Along with the formation of this candle stick pattern, we should also pay attention to its volume.
• The third candle formed should have a higher volume. The volume of the next candles formed after that should also be more bearish.
• After the formation of this candlestick pattern, we should also do modern technical analysis for trade reversal. Such as: Indicators (RSI, MACD), Trendline, Support, Resistance etc.

Reason for formation of EVENING STAR CANDLESTICK PATTERN ?

The psychology behind the formation of the Evening Star candlestick pattern is that the market, which was previously bullish for a long time, reaches its final phase limit, after which a large bullish candle is formed in the market at the resistance, which indicates that The market will remain in up trend right now. Immediately after this, the last step limit book forms a Doji candle which signals that the buyers have become weak after going to this position and they have booked their profits which leads to the formation of a Doji candle.In the second candle, a situation of confusion is created. Both buyers and sellers exert their influence. Sellers try to take the market down while those outside try to continue the up trend of the particular stock, which leads to a Doji candle. is constructed.

After this, the sellers are seen overpowering the resistance and they try to take the market down, which leads to the formation of a big bearish candle, which indicates that the buyers in the market have become weak and the number of sales is increasing. I have more.
Once suitable conditions are created, the market gives signals of recession.

All this happens on the basis of brokerage form or any information. When a particular stock reaches its high, then to bring it to the level, some negative news is given about that particular stock so that it comes down side in the market. This may be the reason why this situation arises.

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USAGE OF EVENING STAR CANDLESTICK PATTERN IN TRADING ?

Entry:- We should take entry in the market when there is a low break of the Evening Star candle stick pattern. This is the right time to take entry in the market on the basis of this candlestick pattern.

Stoploss:- Stop loss in Evening Star candlestick pattern: We should set stoploss slightly above the high of the second doji candle.

Target: – In this, the target should be set after looking at the support or our target should be two or three times of our stop loss, in this we should also use trial stop loss.

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