Bearish Evening Doji Star Reversal Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Bearish Evening Doji Star Reversal pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Bearish Evening Doji Star Candlestick Pattern

The Bearish Evening Doji Star is a top reversal pattern that occurs after an uptrend and is typically a reliable indicator of a potential bearish reversal. This three-candlestick pattern is characterized by a large bullish candle, followed by a Doji that has gapped up, and concluding with a large bearish candle that closes within the body of the first candle.

Structure of the Bearish Evening Doji Star:

1. First Day: The pattern begins with a strong bullish candle, indicating that the buyers are in control and pushing the prices higher in continuation of the prevailing uptrend.
2. Second Day: The second day is marked by a Doji, a candlestick where the opening and closing prices are virtually equal, representing indecision in the market. The Doji should gap above the close of the first day, indicating a continuation of the uptrend but with reduced momentum as both buyers and sellers are in a tug of war.
3. Third Day: The final day is characterized by a bearish candle that opens lower than the Doji, indicating that the sellers have taken control. This candle should close within the body of the first day's candle, signaling a strong rejection of higher prices and the potential beginning of a downtrend.

The Bearish Evening Doji Star function in our code confirms this pattern by ensuring the following conditions are met:

• The first day has a significant up candle, showing the buyers are in control.
• The second day is a Doji, indicating market indecision and it is gapped up from the first day, showing initial continuation of the uptrend but with reduced conviction.
• The third day is a down candle that closes within the body of the first day’s candle, indicating the sellers have taken control, and a bearish reversal is likely.

When traders identify a Bearish Evening Doji Star, it is typically considered a strong sell signal, indicating a potential downturn in the price. However, it is always advisable to look for additional confirmation through other technical indicators and ensure robust risk management practices are in place to mitigate potential losses.