Bearish Evening Three Candle (Reversal Pattern)
Evening Three Candle (pattern) How To Trade:
Evening Star- is a three candle pattern with the highest middle candlestick, but also the smallest body and slight shadows/wicks.
The third candle goes below the bottom half (1/2) of the body of the first candle and its opening FALLS below the opening price of the middle candle.
The evening star is a reflection of the morning star formation.
How To Trade:
1) On 4th candle open,use a sell market order to get into trade
2) Set stop loss higher then sell market order, give around top of 3rd candle (could be large, so adjust stop loss and risk management appropriately). You can find these bearish evening candles on lower time frames, but hourly, 4 hour and daily are better and more reliable, then lower time frames.
3) Set targets at least 1:1 to 1:3, stop loss and use ATR to get daily volatility range too.
Evening Star- is a three candle pattern with the highest middle candlestick, but also the smallest body and slight shadows/wicks.
The third candle goes below the bottom half (1/2) of the body of the first candle and its opening FALLS below the opening price of the middle candle.
The evening star is a reflection of the morning star formation.
How To Trade:
1) On 4th candle open,use a sell market order to get into trade
2) Set stop loss higher then sell market order, give around top of 3rd candle (could be large, so adjust stop loss and risk management appropriately). You can find these bearish evening candles on lower time frames, but hourly, 4 hour and daily are better and more reliable, then lower time frames.
3) Set targets at least 1:1 to 1:3, stop loss and use ATR to get daily volatility range too.