Bearish Evening Star Pattern
BEARISH EVENING STAR PATTERN (BESP)
major top reversal pattern
1. Market is on an uptrend;
2. There is a long white stick on Day 1;
3. A small candle on Day 2 with a gap going to the direction of Day 1’s uptrend; and
4. A black stick on Day 3.
The three sticks form a major top reversal pattern. Day 2’s gap which is in a higher direction effectively forms a star. Then Day 3 shows a black stick with a closing price that is within Day 1’s white body. The market has now turned bearish.
There is an uptrend market and the white body suggests a bullish market. Then the small body shows diminishing capacity. On Day 3, the bears take over, as shown by the strong black stick. Ideally, the BESP has a gap before and after the middle real body.