Evening Doji StarEvening Doji Star is a bearish reversal candlestick pattern. They occur at the top of an up trend.It is so named because just like the planet venus appears just before the sun set, this pattern appears just before price fall and it contains a doji. Formation First day is white candle. Second day is a doji above the white candle. Third day is a long black candle, below the doji.
Importance The first one is a white candle, which signifies the ongoing up trend. On the next day, though the stock opens above the high of the previous day's real body, the demand decreases or the supply increases, so that the momentum of the rising market decreases. The stock closes at the opening. This creates a doji. On the third day, with the bears dominating, the market opens below the doji, comes down and closes low to create a long black candle. This is a clear indication of the bearish reversal of the market.
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