Evening Star Bearish
Pattern: Reversal
Trend: Bearish
Reliability: High
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How to
Identify it
- First day is a long
white day
- Second day is a small
day that gaps in the direction of the previous trend
- The third day is a
black day
What it
Means
In an uptrend, the market
builds strength on a long white day and gaps open on the
second day. However, the second day trades within a small
range and closes at or near its open. This scenario
generally shows an erosion of confidence in the current
trend. Confirmation of the trend reversal is the black third
day.
