About Lesson
- An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large bullish candlestick, a small-bodied candle, and a bearish candle.
- Evening star patterns are associated with the top of a price uptrend, signifying that the uptrend is nearing its end
- An evening star is a candlestick pattern used by technical analysts to predict future price reversals to the downside.
- Although it is rare, the evening star pattern is considered by traders to be a reliable technical indicator.
- For an evening star to be valid, the bearish candle should engulf 50% of the previous bullish candle
