Evening Star Pattern

An evening star is a price action based bearish reversal candlestick pattern used by technical analysts and financial traders. The pattern itself is composed of three candles, and is used to spot the end of a bullish trend and the beginning of a bearish trend. The evening star pattern can be used in any financial market, including stocks, foreign exchange and commodities. The pattern possesses the following three attributes, a) an initial long up bar following a strong uptrend, b) a second bar, whether up or down, much smaller than the previous bar, and c) A long down bar which closes around the midway point of the body of the first bar.Even though the evening star pattern isn’t as oft occurring as other patterns that detect trend changes, it is one of the most powerful reversal candlestick patterns around. The evening star pattern can be applied to virtually any market, on any instrument and on any timeframe. However, as with all candlestick patterns, the higher the timeframe, the more powerful the setup. How to Trade the Evening Star PatternThe evening star actually has two distinct patterns depending upon which market one is trading. In the forex market, there is no gap between the candlesticks (since it’s a twenty-four-hour market gaps are rare, apart from resumption of trading on Sunday evenings). However, in markets outside of forex, such as in stocks, gaps occur more frequently. In such markets, traders acknowledge an evening star pattern if there is a price gap between the first and second candles, and between the second and third candles.Larger gaps indicating stronger reversal potential. Traders using the evening star pattern often wait for a bearish breakout to occur before committing any investment. This indicates reduced risk of entering a failed reversal, since the pattern on its own does require confirmation. In addition, checking for divergence using classic overbought/oversold oscillators is frequently employed. Traders also use the evening star pattern to seek out resistance zones.
An evening star is a price action based bearish reversal candlestick pattern used by technical analysts and financial traders. The pattern itself is composed of three candles, and is used to spot the end of a bullish trend and the beginning of a bearish trend. The evening star pattern can be used in any financial market, including stocks, foreign exchange and commodities. The pattern possesses the following three attributes, a) an initial long up bar following a strong uptrend, b) a second bar, whether up or down, much smaller than the previous bar, and c) A long down bar which closes around the midway point of the body of the first bar.Even though the evening star pattern isn’t as oft occurring as other patterns that detect trend changes, it is one of the most powerful reversal candlestick patterns around. The evening star pattern can be applied to virtually any market, on any instrument and on any timeframe. However, as with all candlestick patterns, the higher the timeframe, the more powerful the setup. How to Trade the Evening Star PatternThe evening star actually has two distinct patterns depending upon which market one is trading. In the forex market, there is no gap between the candlesticks (since it’s a twenty-four-hour market gaps are rare, apart from resumption of trading on Sunday evenings). However, in markets outside of forex, such as in stocks, gaps occur more frequently. In such markets, traders acknowledge an evening star pattern if there is a price gap between the first and second candles, and between the second and third candles.Larger gaps indicating stronger reversal potential. Traders using the evening star pattern often wait for a bearish breakout to occur before committing any investment. This indicates reduced risk of entering a failed reversal, since the pattern on its own does require confirmation. In addition, checking for divergence using classic overbought/oversold oscillators is frequently employed. Traders also use the evening star pattern to seek out resistance zones.

An evening star is a price action based bearish reversal candlestick pattern used by technical analysts and financial traders.

The pattern itself is composed of three candles, and is used to spot the end of a bullish trend and the beginning of a bearish trend.

The evening star pattern can be used in any financial market, including stocks, foreign exchange and commodities.

The pattern possesses the following three attributes, a) an initial long up bar following a strong uptrend, b) a second bar, whether up or down, much smaller than the previous bar, and c) A long down bar which closes around the midway point of the body of the first bar.

Even though the evening star pattern isn’t as oft occurring as other patterns that detect trend changes, it is one of the most powerful reversal candlestick patterns around.

The evening star pattern can be applied to virtually any market, on any instrument and on any timeframe.

However, as with all candlestick patterns, the higher the timeframe, the more powerful the setup.

How to Trade the Evening Star Pattern

The evening star actually has two distinct patterns depending upon which market one is trading.

In the forex market, there is no gap between the candlesticks (since it’s a twenty-four-hour market gaps are rare, apart from resumption of trading on Sunday evenings).

However, in markets outside of forex, such as in stocks, gaps occur more frequently.

In such markets, traders acknowledge an evening star pattern if there is a price gap between the first and second candles, and between the second and third candles.

Larger gaps indicating stronger reversal potential. Traders using the evening star pattern often wait for a bearish breakout to occur before committing any investment.

This indicates reduced risk of entering a failed reversal, since the pattern on its own does require confirmation.

In addition, checking for divergence using classic overbought/oversold oscillators is frequently employed. Traders also use the evening star pattern to seek out resistance zones.

Technical Analysis

Russell analysis and recap of trade ideas

Technical analysis and trade ideas review including Russell

Russell analysis and recap of trade ideas

  • The Russell 2000 technical analysis includes a trade idea with a unique way of how a trader can scale in a trade to create an attractive entry point.
Itai Levitan
Itai Levitan
Sunday, 04/09/2022 | 06:18 GMT-0
04/09/2022 | 06:18 GMT-0
Technical Analysis

S&P technical analysis in 10 seconds (including a trade idea)!

S&P technical analysis in 10 seconds

S&P technical analysis in 10 seconds (including a trade idea)!

  • I am taking a Long here with this double support area.
Itai Levitan
Itai Levitan
Thursday, 01/09/2022 | 07:13 GMT-0
01/09/2022 | 07:13 GMT-0
Technical Analysis

Russell 2000 technical analysis and trade idea (Long)

Russell 2000 technical analysis

Russell 2000 technical analysis and trade idea (Long)

  • An interesting spot for a Long trader, even with near term partial profit taking.
Itai Levitan
Itai Levitan
Tuesday, 30/08/2022 | 05:17 GMT-0
30/08/2022 | 05:17 GMT-0
Education

FxGrow: Multi-Asset Trading Made Easy

fxgrow

FxGrow: Multi-Asset Trading Made Easy

  • FxGrow makes trading simple with the most powerful trading platforms available on the market.
ForexLive
ForexLive
Thursday, 25/08/2022 | 11:36 GMT-0
25/08/2022 | 11:36 GMT-0
Technical Analysis

Bitcoin technical analysis and trade idea follow-up: Respect the 20 day EMA

Signs during a trade: 20 EMA

Bitcoin technical analysis and trade idea follow-up: Respect the 20 day EMA

  • During our trade, we should watch for signs that align with our directional plan.
Itai Levitan
Itai Levitan
Wednesday, 17/08/2022 | 05:59 GMT-0
17/08/2022 | 05:59 GMT-0