Chartered Market Technician Practice Exam 2026 – Complete Prep Guide

The Evening Star candlestick pattern is indeed characterized by its small body and is typically found at the top of an uptrend. This pattern is a three-candle formation that signals a potential reversal in price direction. The first candle is a strong bullish candle, which shows the strength of the uptrend. The second candle is often a small-bodied candle, which may be either bullish or bearish, indicating a pause or indecision among traders. The final candle is a bearish candle that confirms the reversal, suggesting that sellers have begun to take control.

This configuration is significant because it represents a shift in market sentiment from bullish to bearish, highlighting the potential for a downturn after a prolonged uptrend. The presence of a small body in the second candle often symbolizes reduced momentum and uncertainty in the trend, setting the stage for the final bearish confirmation in the third candle.

In contrast, other options do not fit this specific scenario. The Doji, while also involving a small body, does not indicate a specific trend reversal pattern by itself without further context of the surrounding candles. An Exhaustion Gap typically signifies the last surge of buying before a trend reversal but does not refer to a candlestick body structure itself. A Hammer, although it has a small body and can appear