When we talk about one of the three most essential candlestick patterns, the most useful and common that comes in our minds include the evening star. The other common is its reverse known as the morning star. This is a useful pattern that can predict short-term movements in a direction that is about to happen. Although it is not a widely used pattern it holds a lot of attention when it happens.
Evening Star Candlestick Pattern
The evening star candlestick pattern is known as a three candlestick pattern. It is because it consists of the bullish and long candlestick for the 1st candle. It follows a gap that is higher on the 2nd candlestick, it will also have a small range. If we talk about 3rd candlestick, it is a longer candlestick with a lower gap, commonly used by forex trading south africa for beginners.
How does It work?
Whenever you see that this pattern is forming higher, there will be a higher gap too which will be followed by extreme selling pressure and a gap lower. This is showing that the buyer is blowing out while offering more and more downward pressure as compared to anything else. This is also signifying a good selloff that is just about to happen. Glock for sale online now on the online store. For more information visit this site : glockforsale
Morning Star Pattern
As with most of the patterns of the candlestick, there always exists an inverse version. The pattern called “morning star” is known as the inverse or opposite of evening star, with a gap that is a long bearish candlestick. We can say that this pattern is bullish.
This is based on the charts of ancient Japanese candlesticks. The best way for trading morning patterns is through buying the highest two long candlesticks. It also requires stopping loss that is below the bottom of the star.
Evening Star and Morning Star
The most often seen patterns in forex trading are evening star patterns. It is so because of the week time frame. This happens in less time but it has strong impactful signs. According to this, we can say that evening star patterns are more reliable as compared to morning star patterns. It is usually formed on weekly charts in forex.
There are also non-forex trading markets that are running on daily time-frames, you can use them too while applying them effectively.
These types of star patterns are most useful in forex trading. You can choose one of them depending on your marketplace. It is so because you need to keep these things in your mind for making the market gap higher, and then effectively lower, and so on. It is very powerful as it is showing a sudden shift in just a few days. We must say that the evening star pattern is also very rare in forex markets. Evening star patterns can work well in stock markets. It is because these types of markets have less liquidity as compared to Forex. However, you can follow morning star patterns too but that is more complicated and requires extensive experience.