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Nikita (SEBI RA)

28th Aug · SEBI-Registered Analyst

Evening Star – Strong Bearish Reversal

📊 The Evening Star is the opposite of Morning Star → a bearish reversal. ✅ Formation: 1️⃣ First candle – Long green (buying pressure). 2️⃣ Second candle – Small body (indecision). 3️⃣ Third candle – Strong red closing deep into first candle’s body. ✅ Meaning: Bulls lose control, sellers take charge. 📌 Example: A stock rallies from ₹480 → ₹520. At resistance, Evening Star forms near ₹518 → signals downside ahead. 🧠 Rule: Works best near resistance + confirmed by high volume.

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