In this article, We learn about “Evening Doji “.Let’s Go!
The Evening Doji consists of a long bullish candle, followed by a doji that gapped upward, and then a third bearish candle that gapped downward and closed within the body of the first candle .
The Evening Doji is a three-candle bear reversal pattern similar to the Evening Star.
The only difference is that the Evening Doji needs to be the second candle of the Doji candle.
To identify the Evening Doji pattern, look for the following criteria:
- The first candle should be a high white candle in an uptrend.
- The second candle should be a doji with a body gap higher than the first and third candles. Shadows are ignored.
- The third candle is a high black candle that closes at or below the first candle
meaning
This evening doji star acts as a bearish reversal of the uptrend in price as price rises into the pattern and breaks out to the downside .
A downward breakout occurs when price closes below the bottom of the three-candlestick pattern.
A breakout to the downside is expected as the price on the last candle was already close to the low.
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