Evening doji star

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Evening doji star candlestick patterns are one of the most reliable trend reversal signals that traders can use. In this article, we will discuss what they are, how to trade them and which technical analysis indicators can be used with them. Evening doji stars often form at the end of a downtrend and indicate that a reversal may be taking place. We’ll show you how to spot these patterns so that you can make profitable trades.

What is an evening doji star candlestick pattern?

An evening doji star is a three-candlestick pattern that signals the reversal of a downtrend. It consists of a small red candlestick, followed by a large green candlestick, and then another small red candlestick. The key feature of this pattern is that the second candlestick (the large green one) closes near the highs of the session, while the first and third candlesticks (the small red ones) close near the lows.

How to trade with the evening doji star candlestick pattern?

The evening doji star is a bullish reversal pattern, which means that you should look to buy when it forms. An ideal entry point would be when the price breaks above the highs of the second candlestick (the large green one). Your stop-loss should be placed below the lows of the pattern, and your target can be set at a previous resistance level.

Which technical analysis indicators can be used with the evening doji star candlestick pattern?

There are many different technical analysis indicators that you can use in conjunction with the evening doji star candlestick pattern. Some popular ones include moving averages, MACD, RSI and stochastics. You can also use Fibonacci levels to help you identify potential support and resistance areas.

The evening doji star is a powerful candlestick pattern that can signal the reversal of a downtrend. If you know how to spot it and trade it, you can make some very profitable trades. However, be sure to use technical analysis indicators to confirm the reversal before entering a trade.