< Japanese Candlesticks > 👇
*Bearish Candlestick Patterns* Number 6 👇
6 - Negative Evening Star Pattern
This is a negative candlestick pattern that forms at the end of upward trends. The pattern consists of three candles: the first is a long bullish candle, followed by a candle that opens and closes above the close of the first candle, but it is preferable for the second candle to close lower. Usually, the second candle is relatively small as if it is hanging on the chart, far from the bullish candle. Finally, another long bearish candle forms. It is preferable for the third bearish candle to be very long, closing below the open of the first bullish candle, but the pattern can also be valid if the third candle closes within the body of the first bullish candle, meaning that the close of the third candle is less than the close of the first bullish candle. The following image illustrates the pattern.
It is important to note that this pattern is considered relatively strong, as it comes after an upward trend, and if the pattern forms near resistance, it is more credible. However, it is good to wait for confirmation of the trend reversal by monitoring trading volumes and values.
