Mastering Candlesticks: Evening Star Reversal
What is it?
The Evening Star Reversal candlestick pattern is a three-candlestick pattern. The first candle is a strong bullish white candle, which is followed by a second small spinning top candle of any color. Finally, the third candle of the pattern is a black candle.
Where is it?
The Evening Star Reversal will occur at a resistance point after a strong bullish move. One of the reasons the Evening Star Reversal is a strong signal is because it’s like the two candle reversals, but with an extra spinning top candle in the middle. The spinning top candle on its own is a reversal signal, and it all combines to create an incredibly strong reversal signal.
What Should I Do When I See This Pattern?
- Exit bullish trades
- A move below the low of the three candles is a signal to enter a bearish trade.
