Evening Star Candlestick Pattern - पूरी जानकारी.

 Evening Star Candlestick Pattern - पूरी जानकारी.

How to Trade the Evening Star Candlestick Pattern.

You can get all the information you require regarding the Evening Star candlestick pattern here.

·      The Evening Star Candlestick Pattern: Explained.

·      How to Recognize the Evening Star Candlestick Pattern.

·      The Evening Star Candlestick Pattern's variations.

·      Trading the Evening Star Candlestick Pattern: A Guide.

·      Trading Techniques for the Evening Star Candlestick Pattern.

Ø Strategy 1: Retractions on Bare Charts.

Ø Strategy 2: Using Support Levels to Trade the Evening Star.

Ø Strategy 3: Using Moving Averages to Trade the Evening Star.

Ø Strategy 4: Using RSI Divergences to Trade the Evening Star.

Ø Strategy 5: Using Fibonacci to Trade the Evening Star.

Ø Strategy 6: Using Pivot Points to Trade the Evening Star.

The Evening Star Candlestick Pattern: Explained.

A Japanese candlestick design is called the Evening Star.

The reversal pattern is bearish.

It usually shows rejection from higher prices and comes following a price rise to the upside.

Because we anticipate a bear move following the appearance of an Evening Star at the proper spot, the pattern is bearish.

It's a reversal pattern since we want to see price increases prior to the appearance of the Evening Star, which is also a common indication that a trend is coming to an end.

The Morning Star candlestick design is replicated in the Evening Star pattern as well.

How to Recognize the Evening Star Candlestick Pattern.

Three candles make up the Evening Star candlestick pattern.

The Evening Star candlestick pattern can be recognized in the following ways:

1.    Bullish is the first candle.

2.    It is a bearish third candle.

3.    Compared to the other candles, such as a Doji or a Spinning Top candle, the second one has a smaller body.

4.    It makes no difference what color the second candle is.

5.    The second candle's body should ideally not cross over into the bodies of the other two.

According to your charts, it looks like this: 

The Evening Star Candlestick Pattern's variations.

On your charts, the Evening Star candlestick pattern can look a little different.

The second candle's body can be either green or red (bullish or bearish), but it doesn't matter.

With only small wicks above and below, it might not even have a body.

This is how it would appear on your charts:

Trading the Evening Star Candlestick Pattern: A Guide.

To trade the Evening Star candlestick pattern it’s not enough to simply find a candle with the same shape on your charts.

Let me clarify.

The location of a pattern's appearance is equally as important as its shape in determining its validity.

This implies that the same form could represent multiple things depending on where it appears.

The price should rise first, indicating a positive move, when trading the Evening Star.

A potential reversal to the negative is indicated by the appearance of an Evening Star following this positive rise.

Look at…………..................................................................................................

It's easy: when the previous candle's low is breached, the Evening Star pattern is traded.

You should short that conservative trigger.

Look at…………......................................................................................................

Since things don't always go as planned when trading, you also want to safeguard yourself.

And we employ a stop loss for that.

Stop losses come in a variety of varieties.

The most popular method is to set it using the other side of the pattern.

But hold on; don't trade the Evening Star just yet.

We need to know a few more things.

The Evening Star candlestick pattern should ideally be traded in conjunction with other technical analysis or indicators to improve accuracy.

These are several trading techniques for the Evening Star pattern.

Trading Techniques for the Bearish Engulfing Candlestick Pattern. 

Strategy 1: Retractions on Bare Charts.

The Evening Star is an excellent pattern to keep an eye on when the price is down because it is a bearish reversal pattern.

Simply watch for the beginning of a pullback and then identify the appearance of the Evening Star.

Usually, that signals the conclusion of the retreat and the beginning of the next leg downward.

For Example………….................................................................

Strategy 2: Using Support Levels to Trade the Evening Star.

A good area to look for price reversals is at the levels of support and resistance.

We want to use resistance levels while trading the Evening Star since we are searching for moves to the negative.

How it operates:

·      On your charts, draw the levels of resistance.

·      Hold off until the price rises and reaches the resistance level.

·      Verify whether an evening star is visible at that altitude.

·      Short when the price breaks the Evening Star's final candle's low

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example…………............................................................................

Strategy 3: Using Moving Averages to Trade the Evening Star.

When it applies to trading patterns, moving averages are excellent indicators.

When the price is declining, the strategy is to trade pullbacks to the moving average.

How it operates:

·      When the price falls below a moving average, you can identify a downtrend.

·      Hold off until the price rises and reaches the moving average.

·      Verify whether an evening star is visible at the moving average.

·      Short when the price breaks the Evening Star's final candle's low

·       Decide on your take-profit and stop-loss levels and anticipate further declines.

For Example………………..................................................

Strategy 4: Using RSI Divergences to Trade the Evening Star.

Compared to the other trading tactics, this is a little different.

The price must first be on an upward trend, producing higher highs and higher lows, in order to identify a bearish RSI divergence.

How it operates:

·      Look for an upward trend.

·      After each leg to the upside, note the highs the price reaches.

·      Comparing the price highs with the RSI indicator at the same time

·      You can identify a divergence when the price makes higher highs and the RSI makes lower highs.

·      You now watch for the appearance of an Evening Star at a higher price high that coincides with a lower RSI high.

·      Short when the price breaks the Evening Star's final candle's low

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example…………………................................................................

Strategy 5: Using Fibonacci to Trade the Evening Star.

The Fibonacci retracement technique is another well-liked method of trading the Evening Star candlestick.

When the price tends to reverse, Fibonacci indicates retracement levels.

Different levels are more likely to complement the Evening Star pattern depending on the trend's intensity. More information about the various Fibonacci retracement levels may be found here.

This is how a strategy operates:

    ·      You want to watch the price at the beginning of a new trend or on a                                         downward one.

·      A move to the upside will then take place, and you wait for it.

·      Draw the levels from the move's peak to low using your Fibonacci tool.

·      You should wait till the price reaches a Fibonacci level and prints an evening star.

·      Short when the price breaks the Evening Star's final candle's low

·      Establish your take-profit and stop-loss levels and anticipate a downward trend.

For Example…………………........................................

Strategy 6: Using Pivot Points to Trade the Evening Star.

Pivot points are automatically determined levels of resistance and support based on mathematical calculations.

The Daily Pivot Points are the most widely employed while day trading, though the Weekly and Monthly are also commonly used.

Here's how to use pivot points to trade the Evening Star pattern:

·      Turn on your charts' Pivot Points indicator.

·      Look for pivot points that is above the price; these usually serve as resistances.

·      Although it's not necessary, it's ideal to observe the price declining.

·      Await a price increase to reach a Pivot Point level.

·      You want to see an Evening Star pattern at that level, which indicates that the level is being rejected.

·      Short when the price breaks the Evening Star's final candle's low

·      Establish your take-profit and stop-loss levels and anticipate a decline.

For Example……………………………..............................................

What Is The Evening Star's Success Rate?

The Evening Star candlestick pattern has a 71% success rate, according to Thomas N. Bulkowski's Encyclopedia of Candlestick Charts.