The evening star is a bearish reversal pattern that often forms at the end of an uptrend. It is a three-candlestick pattern consisting of a large bullish candlestick, a small-bodied candlestick, and then a large bearish candlestick. The small-bodied candlestick in the middle is known as a "doji" or a "spinning top, " indicating indecision in the market. The bearish candlestick that follows opens below the previous candlestick's close and closes below the midpoint of the first candlestick. This pattern is seen as a sign of a potential trend reversal and is often used by traders to make sell trades.
Dec 14, 2023