Date:19th Sept,2011
EVENING STAR
Evening Star is three candle Bearish pattern.A formation of this pattern at the top is an indication ,that the market may move down.Its a rare pattern.
The Formation:After a Huge Green (bullish) candle is formed,the next day market opens up with a gap and again closes up with a green candle.On the 3rd day however,if the market opens down with a gap and ends as a red candle,the complete formation is called Evening Star.
On the fourth day, one can expect the market to go in a bearish mode for 1-2 weeks if the fourth day opens down.
In the given below chart of AXIS bank.one can notice an evening Star pattern formed in the last week of july and 1st week of August 2011.
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EVENING STAR
Evening Star is three candle Bearish pattern.A formation of this pattern at the top is an indication ,that the market may move down.Its a rare pattern.
The Formation:After a Huge Green (bullish) candle is formed,the next day market opens up with a gap and again closes up with a green candle.On the 3rd day however,if the market opens down with a gap and ends as a red candle,the complete formation is called Evening Star.
On the fourth day, one can expect the market to go in a bearish mode for 1-2 weeks if the fourth day opens down.
In the given below chart of AXIS bank.one can notice an evening Star pattern formed in the last week of july and 1st week of August 2011.
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