Evening Star in Nifty EOD Charts

By | June 8, 2009 6:37 pm

Nifty EOD Daily charts are showing Evening Star formation.

Now first lets see what exactly is this Evening Star and its implication

1. The first bar is a large white candlestick located within an uptrend.
2. The middle bar is a small-bodied candle (red or white) that closes above the first white bar.
3. The last bar is a large red candle that opens below the middle candle and closes near the center of the first bar’s body.

As shown by the chart above, this pattern is used by traders as an early indication that the uptrend is about to reverse.

Now coming to Nifty EOD charts it is not exactly an Evening Star but can be considered

On Thursday we can see in charts we had a up move and after that a Gravestone Doji on friday which was giving an indication of downfall and a large Red candle today. Lets see how coming week spans out.

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