A evening star candlesticks pattern constitutes the inverse of the morning star pattern, interpreted as a bearish technical sign. An evening star is formed following an uptrend and it indicates the start of a downward trend. It is a sign of a reversal in the previous price trend.
Identification: An evening star pattern is made up of a tall green candlestick, a smaller red or green candlestick with a short body and long wicks, and a third tall red candlestick (engulfing at least half of the first green candle). The middle candle of the morning star captures a moment of market indecision where the bulls begin to give way to bears. Then use the third candle as a confirmation of the reversal and mark of the downtrend.
Occurrence: An evening star pattern occurs at the end of a uptrend. These three sticks should also be accompanied with low volume to confirm the trend reversal. The middle stick could be either green or red marking the change of bullishness and the third candle being red confirming the pattern.
Study: A trader takes the evening star as a bearish indicator to take up a required position in the stock/commodity/pair/etc. Generally, a decrease in volume throughout the three sessions of the pattern is what confirms the trend reversal. Traders aim to keep the top of the middle stick as the stop loss.