The Evening Star Candlestick Pattern – Trading Guide

In this blog post we are going to learn about ‘the evening star candlestick pattern’ We will see what is this pattern, and how to trade evening star candlestick pattern. Let’s go deep into trading evening star candlestick pattern.

What is Evening Star Candlestick Pattern?

the evening star candlestick pattern

Evening Star Candlestick Pattern Meaning:

The evening star candlestick pattern is a three-candlestick formation that is used to signal the reversal of a current uptrend. The pattern is created when there is a long green/bullish candle followed by a small red/bearish candle, and then finally, a long red/bearish candle. The evening star candlestick pattern can be found across all timeframes but is most commonly seen on longer timeframes such as the daily chart. When interpreted correctly, this formation can be an extremely powerful tool for traders.

Evening Star Pattern Confirmation

It is very important to note that, evening star candlestick pattern is confirmed only after the formation of the third red/bearish candlestick. some traders do not wait for the third candle to form, this is wrong. For this pattern to be confirmed, the third candle has to form completely.

The next condition for evening star pattern confirmation is that, the price must break the low of the third candle. You cannot enter a trade until and unless the price breaks the low of the third candle of evening star candlestick pattern.

How To Use Evening Star Candlestick Pattern?

Technical Analysts and Technical traders use evening star candlestick pattern to detect bearish reversal. This is a bearish reversal pattern. Always look for this pattern in uptrends on higher time frames. You can use evening star candlestick pattern along with other technical indicators to spot a bearish reversal.

How To Trade Evening Star Candlestick Pattern?

Following are the steps to trade an evening star candlestick pattern:

  • Identify evening star after an uptrend on higher time frames at resistance levels or key levels
  • Wait for the price to break the low of the third bearish candle
  • Take a Sell trade at this point, and have your stop loss just a few pips above this pattern.
  • you can target to book your profit at the next support levels or key levels.

Evening Star Vs Morning Star Candlestick Pattern

1. The evening star candlestick pattern is a three-candlestick pattern that signals the reversal of an uptrend. The morning star candlestick pattern is a three-candlestick pattern that signals the reversal of a downtrend.

2. The evening star pattern is formed when the first candlestick is a long white/green candlestick, the second candlestick is a small black or red candlestick, and the third candlestick is a long black or red candlestick. The morning star pattern is formed when the first candlestick is a long black or red candlestick, the second candlestick is a small black or white candlestick, and the third candlestick is a long white candlestick.

Conclusion

The evening star candlestick pattern is a three-candlestick formation that can signal the reversal of a current uptrend. The first step to identifying this pattern is to look for a long green/bullish candle. This is followed by a small red/bearish candle, and then finally, a long red/bearish candle. While this pattern can be found across all timeframes, it is most commonly seen on longer timeframes such as the daily chart. When interpreted correctly, this formation can be an extremely useful tool for traders in predicting market reversals.

 

Join Free Telegram Channel

 

Also Checkout:

1.  Three White Soldiers Candlestick Pattern

2. 3 Black Crows Candlestick Pattern

 

 

 

Please follow and like us:
error0
fb-share-icon0
Tweet 20
fb-share-icon20

Leave a Comment

error

Like our work? Please spread the word :)