Evening Star is shown that it is very reliable candlestick pattern. This is the pattern of an trend reversal which is a recommendation for those who are fond of trading DOWN.
Features of Evening Star candlestick pattern
Large body candle: Bullish candle (1st candle – green candlestick).
Doji candle: (2nd candle). In some situation, there may be small body candle (bullish or bearish candle) at this position. However, Doji candle is the most reliable for the sign.
Large body candle (3rd candle): Bearish candle (3rd candle – red candlestick).
This pattern often appears in an upward trend, even price increases dramatically before. At the end of the trend, there’s a long body green candle, followed by a Doji candle, showing a price’s consolidation and indecision. At the next candle, price reverses and move downward steeply, creating a long red candle. When three candles as described appear, that is undoubtedly Evening Star candlestick pattern.
How to use Evening Star candlestick pattern to trade DOWN in Olymp Trade
This is a pattern for the reversal of upward trend. You should pay attention to this point. Some traders only use this pattern to estimate the time to trading DOWN.
When all the conditions of Evening Star pattern are fulfilled, you can open a DOWN in Olymp Trade. If you observe one minute candlestick chart, you an buy an DOWN in 5 minutes. If observe five minute candlestick chart, you an buy an DOWN in a time frame from 15 minutes.
This pattern was tested and proved its reliability. Don’t miss it when it appears! If you are interested, you can test this pattern by using Demo Olymp Trade account here.