For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Evening Star Pattern”.
Evening Star Pattern
– Normally it should be a signal of reversal of the current Trend.
– It occurs during an Uptrend; confirmation is not required by the candles that follow the Pattern, because is one of the most reliable Candlestick Patterns (Although it should be better to search a confirmation).
– The First Candle is long and white.
– The Second Candle can be white or black (The color doesn’t matter), it has a short Real Body that is below the First Candle (In case is a Doji, the is called “Evening Doji Star”); it gaps up from the First Candle (For a further confirmation of the Pattern).
– The Third Candle is long and black; it has the Close below the midpoint of the Real Body of the First Candle. It has the Open below the Second Candle.