The evening star is a candlestick pattern containing two long candles and one short candle. 

You need to know the open, high, low and close price for the stock over the time period you want to analyze. Trading the evening star candlestick pattern can be very rewarding, if it is done right.

Breaking Down 'Morning Star' 

Sep 04,  · Evening Star Pattern - Triple Candlestick Patterns (In Hindi) Evening Star Pattern - Triple Candlestick Patterns (In Hindi) Skip navigation Sign in. Search.

I like to use an open toe applique foot for this sewing—it's easier to see the marking. Stitch from one end of the drawn line to the other. You can chain stitch these units one after another. The arrow points to the anchor cloth Press flat to set the seam. Trim a quarter inch seam allowance into the side of the stitching line closest to the unsewn corner.

Press the light patch open and towards the corner. Repeat for the 3 remaining rectangles. Remember that if you're using a directional print to alternate the position of the connector corners as you stitch. With RST, stitch the second connector corner, 2, to the other end of the rectangle.

The drawn line bisects the corner on the same long side as the previous connector corner does. Again, you can chain stitch these units one after another.

Press flat to set the seam. Then trim the seam allowance to quarter inch. Then press the light patch open and towards the corner. Check to make sure the edges of the patches align. Trim the light fabric down if needed. Like in the Forex pattern, the second candlestick should have a relatively small real body like a doji or spinning top , but unlike the Forex pattern, the second candlestick could be either bearish or bullish, as long as it is isolated above the first and third candles.

Sometimes you will see a Forex evening star pattern that looks like its non-Forex counterpart leaving the second candlestick isolated above the others. Trading the Evening Star Candlestick Pattern In the image below, you will see a textbook evening star candlestick pattern.

This one would have worked out very well for any trader that took the signal — even at the traditional entry when price breaks the low of the third candlestick. Given the context in which this pattern occurred, as well as the high wick of the second candlestick, and the low wick of the third candlestick in this pattern, I would have considered entering this trade on the open of the next candlestick.

By doing so, you could slightly raise your potential risk to reward on this trade. This is a high probability signal, although it usually does not make for a very good risk to reward scenario. In our example below, we would have stayed out of the trade using this technique.

This technique is simply a way to create a more favorable risk to reward scenario on a trade that you would otherwise avoid. In the next example below , you will see another evening star signal.

Although this pattern would have worked out, there are a few things to consider. A discerning trader may have stayed out of this one. First, the tall wicks or shadows on top of the three candles in this pattern necessarily lower your risk to reward potential, because your stop loss needs to be placed above the highest high in the sequence.

However, the tall upper wicks are a bearish indication. In the previous two examples, the real bodies of the first candlestick in each pattern are the largest in their respective uptrends.

This is not a requirement, but it is something that you might want to consider. Larger candlesticks are more significant in any price action pattern. All that being said, I still would have take the trade above. I would have taken the traditional entry show in the image above , and I would have closed half of my position as soon as the trade reached 1: After seeing that harami pattern at the bottom of the move, I would have closed the rest of the trade for a decent profit.

Final Thoughts As with any bearish reversal signal, a true evening star will only occur after a uptrend in price. Trying to trade similar candlestick formations during periods of price consolidation is not wise.


What is a 'Morning Star' 

An evening star is a bearish candlestick pattern consisting of a large white candlestick, a small-bodied candle, and a red candle.

Evening Star candlesticks chart formation occurs at the top of uptrends and is typically interpreted as a bearish sign. Opposite is the Morning Star candlestick pattern. Jul 02,  · Evening star patterns are three candlesticks patterns found on stock charts. We teach you how to trade the evening star pattern in this post.5/5(5). 

More Info

Evening Star Candlestick Chart Example

This article describes the evening star candlestick, including performance statistics and rankings, written by internationally known author and trader Thomas Bulkowski. The Evening Star is a bearish, top trend reversal pattern that warns of a potential reversal of an uptrend. It is the opposite of the Morning Star and, like the morning star, consists of three.

The Evening Star chart pattern strategy is a simple yet a very powerful Forex reversal strategy. Jan 31,  · The Evening Star candlestick pattern indicates that bad things (i.e., lower stock prices) are on the way. Learn how to spot this tricky top reversal signal.

More Info
© 2018