Evening Star Candlestick
Formation:
The Evening Star is the reverse of the Morning Star and forms after an uptrend. It’s a three-candlestick pattern with a bullish candle, a small-bodied candle in the middle, and a large bearish candle to end the sequence.
How It’s Made:
The first candle confirms the uptrend, the second candle shows indecision, and the third candle represents sellers taking control, pushing the price down significantly.
Psychology Behind the Pattern:
The Evening Star signals that the buying momentum has peaked. The small-bodied candle in the middle indicates hesitation, and the large bearish candle shows that sellers are now in control, often signaling a bearish reversal.
