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What is the Evening Star Candlestick Pattern?

Evening Star Candlestick Pattern

The Star in the Sky Pattern is represented by a three-candlestick pattern that has a long and bullish candlestick at its opening, followed by a gap higher on the second candle with only a small range.  This is considered to be a star in the sky signaling its nighttime, which means bearish. Third one is used to gap lower and a longer candlestick.

Where it can be used?

The Evening Star Candlestick Pattern can be used to signal a potential change in trend from bullish to bearish. It is important to note that this pattern should not be used as a standalone indicator, but rather in conjunction with other technical indicators to confirm the reversal.

The range on the second candlestick should be small. This is interpreted to show a star in the sky signaling it's time to go dark, thus bearish. The third candle is lower and longer and its gaps.

The bearish evening star is sometimes found at the end of an uptrend, as opposed to the beginning of a downtrend like the bullish evening start. It's used as a sign that the bulls are losing steam and that a reversal could be in store. This candlestick formation should not be used by itself but should be combined with other indicators to confirm a reversal.

This pattern is the oldest method to analyze the market and predict stock prices, but we are using it still today. We can analyze the trend reversals continuation patterns and more.

The Evening Star candlestick pattern is formed when you see a big gap in the price of a stock, followed by a smaller gap, and then really high selling pressure. This means that the buyers have given up and are selling the stock for much less than it is worth.

 This frequently signals a large selloff that is merely waiting to happen. While most traders consider this a very reliable sell indicator, there are occasions when the pattern can be followed by a powerful rally. Always use other tools to confirm the reversal before taking any action.

There you have it! The evening starts candlestick pattern in a nutshell. As with all technical analysis, remember to never rely on anyone indicator in isolation, but rather use several complementary tools to get a well-rounded view of the markets.             

#What is the Evening Star Candlestick Pattern,

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