EVENING STAR CANDLESTICK PATTERN

Evening Star candle is a combination of 3 candles 1st is a Green candle 2nd is a Doji candle red or green and 3rd candle should be a red candle. When the market is in an uptrend, the Evening Star candle is formed at the top level near the resistance zone or supply zone, and from there signals a bearish reversal.

                                                                 
When an Evening Star candle is formed, we should avoid buying the stock or avoid a long position in the index, if it is trading below the level of the evening Star candle formation.

 

How to work the Evening Star candlestick pattern?

If the market condition is an uptrend and reached near the resistance zone or supply zone, in the resistance zone 1candle will be a green candle, 2^nd candle anything red or candle but it should be a doji candle, and 3^rd Candle should be a Strong red candle equal to the first green candle, so in this way evening star candle has structure.

                                                                                   

 

Entry Setup for Evening Star Candle & And what should be his stop loss target?

            You can see the chart of the Evening Star candle above, as shown in the chart, as soon as the third candle closes, it breaks down the low of the Evening Star candle level or gives a breakdown, and then there we can create a short position. Our target should be 1 to 2% of the stock price or support level in case of an index, and the stop loss will be the high of the second doji candle. If the target is hit by 1 to 2%, profit will be booked, and stop-loss will be hit if the low of the doji candle is broken to the upside.