Courtesy of Market Tamer
- The Evening Star pattern is comprised of three candles.
- The pattern is found at the top of a trading range after a bullish trend.
- The first candle is a long white candle followed by a gap up to a doji or spinning top and then ideally another gap to the downside and trade down.
- The third candle should trade at least half way down into the candle of the first session.
- The longer the first and third candles, the stronger the formation.
- The second candle needs to show extreme indecision as evidenced by a doji or a very small real body.
- Volume should increase on the third candle as it trades down to confirm the reversal of market sentiment.
- This formation is very powerful and has a high probability of success.
Helter Skelter
Dow
S&P 500
Nasdaq
