01/12/2025
A bearish reversal pattern made of three candles:
1️⃣ Candle 1 — Strong Bullish Candle
Long green/white body
Shows buyers firmly in control
Continues the existing uptrend
2️⃣ Candle 2 — Small Candle (Indecision)
Can be small body, doji, spinning top
Gap up from Candle 1
Indicates bulls losing strength
Market uncertainty
3️⃣ Candle 3 — Strong Bearish Candle
Opens below Candle 2
Closes deep into Candle 1’s body
Confirms bearish reversal
📉 What the Evening Star Tells You
Buyers push price up (Candle 1)
Momentum slows (Candle 2)
Sellers take over with force (Candle 3)
Often leads to trend reversal downward
📌 Key Characteristics
Appears at market tops
Needs 3 candles to fully form
Stronger when Candle 3 closes below the midpoint of Candle 1
More reliable with high volume on Candle 3
Works better when near a resistance level
🔎 Opposite Pattern
Morning Star → bullish reversal at the bottom of a downtrend