Evening star and morning forex

Evening Star The Evening Star Pattern is viewed as a bearish reversal pattern, that usually occurs at the evening star and morning forex of an uptrend. The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are definitely in charge, usually new highs were made. The second day begins with a bullish gap up.

It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher. Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that is the most significant candlestick. Day 2 continued Day 1’s bullish sentiment by gapping up. However, Day 2 was a Doji, which is a candlestick signifying indecision.

Day 3 began with a bearish gap down. Also, Day 3 powerfully broke below the upward trendline that had served as support for XOM for the past week. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. Morning Star The Morning Star Pattern is viewed as a bullish reversal pattern, usually occuring at the bottom of a downtrend.

The first part of a Morning Star reversal pattern is a large bearish red candle. On the first day, bears are definitely in charge, usually making new lows. The second day begins with a bearish gap down. It is clear from the opening of Day 2 that bears are in control.

However, bears do not push prices much lower. Generally speaking, a bullish candle on Day 2 is viewed as a stronger sign of an impending reversal. But it is Day 3 that holds the most significance. Day 3 begins with a bullish gap up, and bulls are able to press prices even further upward, often eliminating the losses seen on Day 1.