How to Earn more with Evening Star Candlestick pattern?

Categories: What is Evening Star Candlestick Pattern?

How to Earn more with Evening Star Candlestick pattern?

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 click the link above you will land on the Binomo Homepage.

Enter your email, password & hit start trading.

Once you have signed up you will land on the Binomo dashboard.

Now, click on the chart button and select Japanese candlestick from the menu.

That’s it the basic setup is over!!

How to Trade with Evening Star Candlestick pattern?

Spotting and Trading with the Evening Candlestick pattern is very easy.

You just need to remember How evening star candlestick works?

Firstly, you need to find a strong uptrend. as evening star candle works best with the uptrend.

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.

That’s it!!! Evening Star is so easy to spot.

Now, let’s check some examples.

Given above is one hour chart.

As you can see above. Firstly, we can see clear a good uptrend.

Secondly, a big bullish body with a small wick.

Thirdly, a candle with a small body and a small wick.

Lastly, a big bearish body with a small wick and later a big uptrend.

So, here we can take a SELL Trade.

However, as you can see later the market fluctuating later up and down.

So, to avoid any error here we should use Support and Resistance.

If you don’t know how to draw support and resistance click here.

Let’s check one example to gain better clarity.

Given above is one hour chart.

Firstly, We see a good uptrend and later a big bullish body and later a small red body with a small wick.

Lastly, we see a big red body with a small wick. but as you can see the evening star is near to the resistance level so here we can take SELL trade with 15 mins time frame as the distance between Support and Resistance is less and the candle can soon touch the support level.