Evening Star Bearish Candlestick Pattern

I want to get out ahead of the crowd by pointing out that this week — minus a massive rally tomorrow — will likely conclude with a confirmed Evening Star candlestick pattern on the weekly charts of the Nasdaq 100 and Nasdaq Composite.

The evening star candlestick pattern is considered a high reliability bearish reversal pattern and is identified as follows:

• The first bar is a long bodied candlestick that closes higher than where it opened
• The second bar is a small bodied candlestick that gaps higher on the open
• The third bar is is long bodied candlestick that closes lower than where it opened and gaps lower on the open
• Ideally the third bar will close at least half-way down the body of the first bar

This entry was posted on Thursday, November 8th, 2007 at 11:44 pm and is filed under Bearish, Charts. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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