Bearish evening doji star is the one of the most reliable candlestick pattern which indicates a possible trend reversal.This evening doji star includes three candlesticks.First candle is the long white body. The second candle is the doji by a higher gap.Third candle is the black candlestick with a closing price is within the first day white candle.Evening Doji star pattern is widely followed by all types of traders trading all types of financial instruments.
Acknowledging Criteria:
1. Financial market is in uptrend for many days.
2. We can see a white candlestick in the first day of the trading.
3. Then we can see a doji whose low price is higher than previous day high price.
4. Finally the third day is the black candlestick whose closing price is near to mid of the first day white candle.
Explanation:
It should be formed after a significant uptrend.First day should be bullish long white candlestick. Second day doji appears showing the diminishing power of bulls.Third day is an ideal bear candlestick proves that bears have taken over the control.Ideally which closes below mid-point of first day long candlestick. Bearish evening doji star appears when market are their over brough zone. The Doji may be more than one, two or even three. Doji’s gaps are not important. The reliability of this pattern is very high, but still a confirmation in the form of a black candlestick with a lower close or a gap-down is suggested.