nalinakshi
Education

doji and evening star on the go

NSE:NIFTY   Nifty 50 Index
confirmation will be today,s trade / formation of today,s candle. Sgx nifty is suggesting correction, close of this candle will confirm.

Evening Star candlestick pattern
The Evening Star candlestick pattern is also a reversal pattern. The pattern has three candles. It forms at the top of an uptrend. The first candle is any long and bullish candle. The second candle is a small and indecisive candlestick . The third candle is any long and bearish candle.

During an uptrend, high optimism causes heavy buying. The first candle forms. It’s long and bullish . The indecision between the buyers and sellers forms the second candle. It’s a small candlestick—or a Doji . The expectation of negative stock news in the market forms the third candle. It’s long and bearish . When the volume increases and the price decreases, it suggests a change in trend.

These patterns are used for trend identification. The Morning Star pattern is used as a buy signal. The Evening Star is used as a sell signal. It’s advisable to use a combination of patterns and indicators to determine your trading strategy.

Comments

Evening star after a prolonged upttrend.. this move is only 2 days old.. and Doji is only indecision.. Yes one should be cautious on longs. but index has some more legs i suppose
Reply
nalinakshi Parasuram
@Parasuram, after a bullish candle
Reply
nalinakshi nalinakshi
@nalinakshi, please read the artile slowly
Reply
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