What is the Evening Star Candlestick Pattern?  

The basic concept of the Evening Star candlestick Pattern  

Picture this: The evening star candlestick pattern is the combination of 3 candles, 1st candle is a green candle and 2nd candle is a doji candle with a small size it may be green or red, and 3rd candle should be a red candle.    
When the market is in a downtrend, the Morning Star candle is formed at the lower level near the support zone or demand zone, and from there signals a bullish reversal.  

Candlestick formation?  

Candle 1: Big Green candle  

The first candle shows a large green candle, telling us buyers are in control. The market closes much uper than where it opened.  

Candle 2 : Star-like doji candle  

On the second candle, we see a small candle with a small real body candle. It can be either a red candle or a green candle. The color doesn't matter much here. This candle shows that buyers might be losing uptrend.  

Candle 3: Strong red candle  

The third candle's final brings a strong red candle, closing at least halfway up the first day's green candle. This shows sellers are going up back into the market.  

Why evening star candlestick pattern matter?  

The evening star candle pattern is special because it shows us three important market moments which is given below.  

1. Strong buying pressure in the market.  

2. A pause in the uptrend in the market.  

3. Return of selling pressure in the market.  

How to Trade in the Evening Star Candlestick Pattern?  

What should be Entry Points for intraday trades?  

1. Wait for the third candle to complete.  

2. Look for the pattern near resistance levels.  

3. Check if trading volume increases on the third candle.  

What should be a Stop Loss order?  

1. Place stoploss order above the top of the second doji candle.  

2. Keep your risk manageable (usually 1-2% of your account).  

3. Consider market volatility when placing a stop-loss order.  

We have to Avoid Common Mistakes  

1. Don't jump in too early for profits.  

2. Don't ignore the overall market trend, if fully positive with volume avoid for entry.  

3. Don't forget to set a proper stop-loss order.  

4. Don't trade the pattern in a sideways market.  

5. The evening star candlestick pattern isn't a guarantee, but it's a helpful tool when used as part of a complete intraday trading strategy.  

A key point for Pattern Reliability  

1. Works best in established uptrends market.  

2. More reliable when reaching near resistance zone.  

3. Success rate high with higher trading volume.  

4. Better results on longer timeframes like 15-minute and 1-hour timeframes.  

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