An evening star is a bearish candlestick pattern consisting of three candles: a large green candlestick, a small-bodied candle, and a red candle. An evening star demonstrates the following characteristics: the first bar is a large white candlestick located within an uptrend; the middle bar is a small-bodied candle, red or green, that closes above the first green bar; and, the last bar is a large red candle that opens below the middle candle and closes near the center of the first bar’s body. This pattern is used by traders as an early indication the uptrend is about to reverse.
Top of the wick of the Doji is stop loss. Lowest low of the first candle is entry. The difference doubled is target.
Hi,
The prior rally is sideways and during the doji day volume should be high to confirm the trend reversal.
Thank You for the feedback. I’ll find another suitable Doji .