Evening star what is it

Evening star patterns are associated with the top of a price uptrend, signifying that the uptrend is nearing its end. The opposite of the evening star is the morning star pattern, which is viewed as a bullish indicator.

A candlestick pattern is a way of condensely presenting certain information about a stock. Specifically, it represents the open, high, low, and close price for the stock over a given time period. Each candlestick consists of a candle and two wicks. The length of the candle is a function of the range between the highest and lowest price during that trading day.

A long candle indicates a large change in price, while a short candle indicates a small change in price. In other words, long candlestick bodies are indicative of intense buying or selling pressure , depending on the direction of the trend, while short candlesticks are indicative of little price movement. The evening star pattern is considered a very strong indicator of future price declines. Its pattern forms over a period of three days:. The evening star pattern is considered a reliable indicator that a downward trend has begun.

However, it can be difficult to discern amidst the noise of stock-price data. To help identify it reliably, traders often use price oscillators and trendlines to confirm whether an evening star pattern has in fact occurred. It's advisable to consult various different technical indicators to predict price movements, as opposed to relying solely on the signals provided by one. Despite its popularity among traders, the evening star pattern is not the only bearish indicator.

Other bearish candlestick patterns include the bearish harami , the dark cloud cover, the shooting star, and the bearish engulfing. As the planets are closer, planets appear larger in comparison to the stars.

Hence, the shift is not enough for the planets to twinkle. As the air moves in and out, the starlight is refracted, often different colors in different directions.

Stars are so distant that they appear as pinpoints of light in the night sky, even when viewed through a telescope. Because all the light is coming from a single point, its path is highly susceptible to atmospheric interference i. So, the Red Planet must be a morning star. With Mercury and Venus, there is never such ambiguity, as they are never very far from the sun in the sky.

In fact, in the pre-Christian era, both of these planets had dual identities — two names — as initially, it was not realized that they alternately appeared on one side of the sun and then on the other. Mercury was called Apollo when it shone as a morning star, and was called Mercury when it appeared in the evening sky. Venus was Phosphorus in the morning and Hesperus in the evening. We can thank Pythagoras around the 5th century B. Because they orbit the sun more closely than Earth does, Mercury and Venus are called "inferior" planets.

Elongation refers to the angle between the sun and a planet, as seen from Earth. In general, when Mercury or Venus has a western elongation from the sun, it is a morning star; with an eastern elongation, it is an evening star.

This rule can be extended to the planets that orbit the sun beyond our own orbit — the so-called "superior" planets, Mars, Jupiter and Saturn. It would therefore be wise to be on the lookout for the evening star and, with proper hedging, see if the trade works out. Disclaimer: The information above is for educational purposes only and should not be treated as investment advice.

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