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The Evening Star pattern is the converse of the Morning Star pattern. The Evening Star is a top reversal, so bullish trend confirmation is important.


The Evening Star is a three candlestick pattern:


Ideally, the first, white bar is has a long white body. The second candlestick gaps up and has a small real body--ideally, no real body (Doji). The third candlestick has a black body that penetrates well into the first day's white real body. If the third candlestick gaps down, an Abandoned Baby pattern (Island Top) emerges.




EveningStar(INPUT, Stringency=5, LRRange=10, LRType=3, DojiPercentage=15)=begin

  retval = NONUM

  targetBar = 0

  pnt0 = targetBar

  pnt1 = targetBar + 1

  pnt2 = targetBar + 2

  ppClose = GetPrice($1, BATE_CLOSE, pnt2, 0)

  ppLow = GetPrice($1, BATE_LOW, pnt2, 0)

  pOpen = GetPrice($1, BATE_OPEN, pnt1, 0)

  pClose = GetPrice($1, BATE_CLOSE, pnt1, 0)

  pLow = GetPrice($1, BATE_LOW, pnt1, 0)

  cOpen = GetPrice($1, BATE_OPEN, targetBar, 0)


  if Bullish($1, pnt2, LRRange, LRType) == TRUE then begin

    if BlackBody($1, pnt0) == TRUE then begin

      if WhiteBody($1, pnt2) == TRUE then begin

        if Stringency >= 7 then retval = '7'|clr_red|above|ftiny|arrow|vertical

        if pOpen > ppClose then begin

          if Stringency >= 6 then retval = '6'|clr_red|above|ftiny|arrow|vertical

          if cOpen < pClose then begin

            if Stringency >= 5 then retval = '5'|clr_red|above|ftiny|arrow|vertical

            if DojiForm($1, pnt1, DojiPercentage) then begin

              if Stringency >= 4 then retval = '4'|clr_red|above|ftiny|arrow|vertical

              if cOpen < pLow then begin

                if Stringency >= 3 then retval = '3'|clr_red|above|ftiny|arrow|vertical

                if LongWhiteForm($1, pnt2) then begin

                  if Stringency >= 2 then retval = '2'|clr_red|above|ftiny|arrow|vertical

                  if LongBlackForm($1, pnt1) then begin

                    retval = 'Evening Star'|clr_black|above|ftiny|arrow|vertical
















The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart.



The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of an Evening Star. The lower the number, the more strict the interpretation.


The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 5.



The EveningStar overlay uses the LR() function with either a continuous or quadratic calculation to determine how the market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.



The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.



The DojiPercentage parameter represents a percentage. This parameter serves as the basis for determining whether a candlestick is Doji or near Doji. The smaller the value assigned to DojiPercentage the more stringent the test. The default is 15, or fifteen percent.



Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.


The string plot for a fully qualified Evening Star pattern is "Evening Star" rendered in black above the candlestick.









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