The Evening Star is a three-candle pattern that appears at the top of an uptrend, signaling a potential bearish reversal. It consists of a bullish candle, a small-bodied middle candle, and a bearish candle, showing a transition from buyer control to seller strength. This pattern often appears at market peaks, where optimism is giving way to caution.
Understanding the Evening Star pattern helps traders anticipate downtrend formations, allowing them to time their exits. For those seeking to refine their skills in spotting trend reversals, The Chart Guys provide resources to support pattern recognition.
