Price Action EVENING STAR Pattern Trading Strategy [Signals, Formation, Trade Examples]

Price Action EVENING STAR Pattern trading strategy [Signals, Formation, Trade Examples] — Today we will look at another Price Action pattern, as well as a candlestick formation — EVENING STAR. This is the same pattern for the morning star, only it is at the top.

This is a fairly simple but strong signal for making a deal in any market: forex, cryptocurrency market, stock market. This tells us that the trend may change after it forms. And the price from an uptrend will change it to a downtrend.

What is EVENING STAR Pattern?

An evening star is also a pattern that usually forms at the moment of at least a temporary trend reversal in the financial markets, as well as at the end of corrective movements on the charts of any financial instruments. The model consists of 3 candles (see example below):

The deal is opened after the close of the 3rd candle of the pattern.

Stop and Profit:

1) Stop loss — above the high of the 2nd candle for sales (this is the best option).

2) Profit — there are options:

• 1 to 2 or 1 to 3 relative to the stop loss.
• At important levels (1st and 2nd profit).
• We expose on Fibonacci from the last movement.
• Other methods are channels, trend lines, Fibonacci extensions, etc.

That’s all I wanted to tell you about the EVENING STAR Pattern, then I attach examples of trading in the video: