✤ Setup Conditions:
1. 1st candle’s close must be greater than 1st candle’s open, it means 1st candle is a bullish candle.
2. 2nd candle can be bullish bearish, or neutral like a Doji that opens at gap up.
3. 3rd candle’s close must be less than 3rd candle’s open, it means 3rd candle is a bearish candle..
4. 3rd candle’s close must be less than 50% of the 1st candle's entire range.
5. 4th candle confirmation needed.
The Evening Star is a three-candlestick pattern that signals a potential reversal from an uptrend to a downtrend. It indicates that buying momentum has weakened, and selling pressure is taking over.
✤ Key Characteristics:
1. First Candle:
☛ A large bullish candlestick (green/white) showing strong buying pressure.
2. Second Candle:
☛ A small-bodied candlestick (can be bullish, bearish, or neutral like a Doji) that gaps up, indicating indecision or a pause in the uptrend.
3. Third Candle:
☛ A large bearish candlestick (red/black) that closes well below the midpoint of the first candle, confirming the reversal.
✤ Interpretation:
☛ Suggests the market is transitioning from bullish to bearish sentiment.
☛ Works best when it forms near a significant resistance level or after a prolonged uptrend.
✤ Confirmation:
☛ Traders often wait for the next candle to confirm the downward trend by closing lower.
