What is the Evening Star Pattern?

Under a rising market, the evening start reversal pattern tends to signify the gaining of control by sellers over the market. This occurs after the market has reached a new high.

The evening star formation consists of a sequence of three candles. The first one is white and has a long body, the second candle is of smaller size and short body (its color is of no importance), whereas the third one is a long black candle. The third candle is the confirmation of the trend reversal and its real body should not touch the real body of the second candle, whereas it should close at least halfway into the real body of the first candle.

The evening start formation is a bearish top reversal pattern that is a counterpart to the morning star formation.

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