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.
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