Bearish Evening Star
The Evening Star pattern consists of three consecutive candles. It begins with a long bullish candle representing the strong presence of buyers in the market. Next is a short-bodied bearish or bullish candle, indicating a state of indecision within the market. At this point, special attention should be given to the last candle, which is a long bearish candle signaling a downtrend, and its closing price must be below 50% of the body of the first bullish candle.
The arrangement of these three candles indicates an upcoming reversal to the downside in the market. In an uptrend, the Evening Star pattern suggests a gradual waning of buying, with selling gaining the upper hand, leading to a reversal in price to the downside.
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