Evening Star Variations
In reality there are various versions of the Evening Star signal you will come across as a candlestick trader. We will elaborate on some common variations shown in the following figure.
Dragonfly Doji Evening Star signal
The second day of the signal is a Dragonfly Doji.
Hanging Man Evening Star signal
The second day of the signal is an Hanging Man signal.
Harami Cross Evening Star signal
The second day of the signal is a Harami Doji signal.
Abandoned baby Evening Star signal
This is the most powerful evening star signal. This type of signal has a gap between the first day's high and second day's low AND a gap between the second day's low and third day's high. The gaps represent extremeness. The first gap signifying exuberance. It is followed immediately by an indecisive signal. Supply at this point equals demand. Not a good thing if you are a bull. The second gap is a visual representation of the bears taking control of the stock with great force. Becoming a bear at this point is the correct approach.