We will explain bearish evening star candlestick patter with a chart as illustrated in below 2 charts and same is being amply made clear with Ranbaxy chart which is an Indian stock. It indicates a reversal in the direction and means that bears are likely to strike and time to book profit. It is a reversal pattern and a point to note is that it has a weak reliability.
In an uptrend, the first day is a long blue candle continuing the established bull trend. The second day is a candle (red or blue) with a real body at the lower end, a long upper wick and no (or almost no) lower wick. Occurring in an uptrend the Shooting Star formation is indicative of a bearish change of momentum.
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