We have already gone through Doji candlestick; which is indecisive candlestick and sometime it gives cautious approach prior to reversal of trend.
Now today lets have look at Evening Star Candlestick
This candlestick formation is Trend Reversal from Bullish to Bearish Trend and it is 3 candlesticks.
Lets have look at different charts and try to understand evening star candlestick pattern first.
This candlestick formation is Trend Reversal from Bullish to Bearish Trend and it is 3 candlesticks.
Lets have look at different charts and try to understand evening star candlestick pattern first.
Now lets understand this step by step.
Day 1 or Candlestick or Trend
Underlying trend must be uptrend. Last close should be in green wrt to previous close.
Day 2 Evening Star Candlestick
Opening must be gap-up from previous close and close must also be above to previous close. It is okay if today closing level is bit below or above today's opening but should never be below previous close. Low may or may not be same to previous day's high.
Day 3 Reversal of Trend
Opening must be below previous close and closing must be below opening levels (3rd day) Sometimes current candlestick high is near to previous day's low but that is okay.
Please note these candlesticks may or may not act reversal as there are several factors which affects price movement of underlying asset.
Day 1 or Candlestick or Trend
Underlying trend must be uptrend. Last close should be in green wrt to previous close.
Day 2 Evening Star Candlestick
Opening must be gap-up from previous close and close must also be above to previous close. It is okay if today closing level is bit below or above today's opening but should never be below previous close. Low may or may not be same to previous day's high.
Day 3 Reversal of Trend
Opening must be below previous close and closing must be below opening levels (3rd day) Sometimes current candlestick high is near to previous day's low but that is okay.
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