Hello…how are you?
Well… today in this article I am going to talk about one of the most famous candlestick patterns i.e Evening Star candlestick pattern.
What is Evening Star Candlestick Pattern?
An evening star is a stock price pattern used by traders to find possible sell calls.
|Image Credit: Dailyfx|
It is a bearish candlestick pattern consisting of three candles.
Firstly, a big bullish body with a small wick.
Secondly, A small body with a small wick.
Thirdly, A big bearish body with a small wick.
How does the Evening Star candlestick pattern work?
|Credit: Daniel Schiffer Youtube Channel|
This Evening Star candlestick pattern works just like day to evening. (i.e light to dark)
The First candle is just like daylight. Here, The buyers are optimistic and buyers are active in the market.
The Second Candle is just like the Evening Star. Here, both buyers and sellers are confused to make a move.
The third candle is just like a night light. Here, The sellers are optimistic and buyers are active in the market.
How to Spot Evening Star Candlestick Pattern?
Spotting an Evening Star candlestick is very easy.
Here, to illustrate the Evening Star candlestick pattern. I am going to use Binomo.
If you don’t have a Binomo account. click here.
You can also sign up via the form given below.
Once you have signed up you will land on the Binomo dashboard.
That’s it the basic setup is over!!
How to Trade with Evening Star Candlestick pattern?
Secondly, find a Strong bullish candle.
Thirdly, a candle with a small body and a small wick.
Thirdly, a bearish candle with a big body and small wick.