What is an evening star chart pattern?

Todays Hot Stocks. . Trading


The evening star chart pattern is a bearish reversal pattern. It consist of three different candlesticks or three different days.

The first candlestick consist of a large upday. The stock is pushed higher and the bulls are in control. The secound day the stock opens and tries to go higher.

This time the stock is unable to gain any upward movement. The bulls and bears are at a pretty equal stance. This indicates that the bulls might be losing power and buying pressure could be faiding.

The third day of the pattern is a down day. Here the stock gives into selling pressure and starts to fall fast. This last day can mark the end of a bullish rally. Below is an example of what an evening star pattern looks like.