[tymen1]

Answer to Tyrant Ragg's 2nd question :

Yes, this would be a valid short entry straight after completion of the red (3rd) candle of the evening star.

The best entry possible would be obtained.

It is a pity that the price is now headed for the stop loss which would be located 2/3 pips above the "star" candle.

But if you sense that this trade is going totally against you then it is possible to cut your losses by getting out early.
On the other hand, the price has not yet hit the stop loss. I have seen trades come within 1 pip of the stop loss then roar into profit! You could wait for this.

If the trade does indeed fail, do not dispair. Often a 2nd evening star comes along, or other candlestick pattern such as dark cloud and then the price roars in your favour - so much so that it more than cancels out the loss made from this pattern.



Late note on this question

I have examined this trade on my own charts. The evening star is not on the Bolinger bands but rather somewhat down from it.

Looking at it carefully, I would not trade this pattern. Being short of the upper BB it has too much upward potential and that is starting to show.