Evening Star - A Typical Example

12 Nov

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:

• 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