The Evening Star pattern is a bearish reversal candlestick pattern that signals a potential downward trend. It typically appears after an uptrend and consists of three candlesticks: 1. First Candle (Bullish): A long green candle representing strong buying momentum. 2. Second Candle (Star): A small-bodied candle (green or red) indicating indecision in the market. 3. Third Candle (Bearish): A long red candle showing selling pressure and confirming the reversal. Traders use this pattern to identify sell signals and manage risk effectively. It is crucial to confirm the pattern with other indicators or volume analysis for reliability.
