|Abandoned Baby Bearish||Bearish Engulfing||Bearish Harami||Dark Cloud Cover||Dragon Fly Doji|
|Evening Doji Star||Gravestone Doji||Hanging Man||Shooting Star||Three Black Crows|
|Three Outside Down||Three Inside Down||Bearish Kicker|
Evening Star Candlestick Chart pattern is a bearish reversal pattern of high reliability. This pattern is only valid when formed at an uptrend or at a possible support. This pattern is just opposite of Morning Star Candlestick Pattern. This pattern is also a three day pattern or formed by three continuous candlestick of following characteristic.
Day 1: On first day, a large bullish candlestick is formed, representing further continuation of an uptrend.
Day 2: On second day, a small candlestick either bullish or bearish, is formed which gaps up from the first candlestick formed on Day 1.
Day 3: On third day a large bearish candlestick is formed which gaps down from the candlestick formed on Day2. It opens higher then the close of the Day 2 candlestick and closes atleast near or above the centre or midpoint of the candlestick formed on Day 1.
The strength of this pattern depends a lot on the size of the candlestick. The bigger bullish candlestick formed on day 1 in continuation of previous uptrend, shows the market sentiments is strongly under the control of bulls.
The second day formation of small candlestick (either bullish or bearish or neutral) with a gap up indicates that the bulls are still holding the position but they are not able to push the price much higher, further indicates that the bears strength is loosening. A bearish candlestick on day 2 speaks a lot more about bulls weakness.
Formation of long bearish candlestick on Day 3 confirm evening star pattern and shows that bears are taking over the market over the bulls with strength. If the third day candlestick opens with a gap down and closes below or atleast near the midpoint of the Day 1 candlestick body, it indicates a strong trend reversal and a sell signal.
Evening Star Candlestick Chart Pattern by itself is useful in confirming trend reversal but one has to see the overall market and other technical indicators for its strength and reliability.