Evening Star, Definition
On a Japanese Candlestick chart this major bearish reversal pattern occurs during a sustained uptrend. The first day shows a candle with a long white body. On the second day, a gapped up small body candle occurs. This signals a potential reversal. On the third day, a candle with a black real body emerges, characterized by a down close with the close below the midpoint of the first day. The deeper the third candle moves into the real body of the first day's candle, the more powerful the reversal signal. Opposite of Morning Star. See also: Evening Doji Star
The further this third candle retreats into the real body of the first day's candle, the more powerful the reversal signal.
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