Evening Star is a bearish candlestick that appears during an uptrend and consists of three candles. It starts with a long-bodied, green candle day. It is then followed by a gapped and small-bodied candle day, and concludes with a downward close. The close would be below the first day’s midpoint.
The bullish version of the Evening Star pattern is the Morning Star candlestick pattern.
Traditionally, this candlestick pattern is recognized in conjunction with a specific trend direction, i.e. it might be important for the pattern if the price has been generally going up or down. The ‘Detect Trend Based On’ option allows you to specify which of the following methods to use to detect the trend:
By comparing two different SMAs, the 'SMA50, SMA200' option only detects stronger trends. When the trend is weak and the condition above is not met, no patterns will be detected. In contrast, the 'SMA50' option will also detect weaker trends.