Evening Star - A Typical Example
Evening Star
Evening star patterns are associated with the top of a price uptrend, signifying that the uptrend is nearing its end
The evening star pattern is considered to be a very strong indicator of future price declines. Its pattern forms over three days:
Evening star patterns are associated with the top of a price uptrend, signifying that the uptrend is nearing its end
The evening star pattern is considered to be a very strong indicator of future price declines. Its pattern forms over three days:
- The first day consists of a large white candle signifying a continued rise in prices.
- The second day consists of a smaller candle that shows a more modest increase in price.
- The third day shows a large red candle that opens at a price below the previous day and then closes near the middle of the first day
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