Evening Star

The evening star is a bearish candlestick pattern that's identical to the morning star, except opposite. It requires a total of 3 candles to form, but often has single candle patterns baked into it, such as a shooter as candle 2.

It consists of three candles: the first one is a bullish candlestick, the second one can be bullish or bearish with a small body, and the third one is a bearish candle.

Trading this pattern can be done in a variety of ways, and can be extremely lucrative:

• Combining our prior knowledge of the strength of the shooter, we can enter at the close of day 2, in anticipation of the bearish day 3 to complete the evening star.
• Wait until day 3 to see the gap down for the confirmation of an evening star. Use candlestick patterns on smaller, intraday time frames to find an optimal entry.

Below is just one more example of the evening star reversal.