Evening star doji

The Evening Star Doji is the opposite of the Morning Star Doji. The Evening Star Doji is a three-candle pattern consisting of a long bullish candle, a bullish or bearish oriented Doji, and then a long bearish candlestick. The Doji may gap above the long bearish and bullish candles. For this pattern to be valid, the low of the bearish candlestick must be at least up to the halfway point of the bullish candlestick.

Evening Star Doji pattern

The importance of this pattern is seen at the top of an uptrend. At this time, buyer have been dominating the market, sending the asset racing skywards. Then along comes the Doji (the candle that looks like a cross) which represents a period of low volume and trade indecision between buyers and sellers. The third candle shows that sellers have beaten the buyers out of the market. The lower down the bearish candle’s low is in relation to the body of the bullish candle, the stronger the signal. If the body of the bearish candle is really long, it is a signal that buyers have had it and sellers have taken over.

The Evening Doji Star is a highly reliable pattern.