Evening Star
Candlestick PatternsA three-candle bearish reversal pattern consisting of a large green candle, a small-bodied candle, and a large red candle. It signals the end of an uptrend.
What Is an Evening Star?
The evening star is the bearish counterpart of the Morning Star. It forms at the top of an Uptrend and consists of three candles. The first is a strong green (bullish) candle confirming the rally. The second has a small body, reflecting indecision (it may gap above the first candle's close). The third is a strong red (bearish) candle that closes well into the body of the first candle.
How to Trade the Evening Star
The evening star on a daily GBP/USD chart near Resistance provides a high-conviction short signal. Enter at the close of the third candle. The stop loss goes above the high of the second candle (the "star" candle), and the target is typically the next significant support zone.
The pattern works best when the third candle closes below the midpoint of the first candle, showing that sellers have firmly regained control.
Variations and Context
In forex, gaps between the three candles are uncommon since the market trades nearly 24 hours. Do not require gaps to validate the pattern. Focus on the relative size of the candles and the trend context. An evening star after an overextended rally, especially one that pushed far from the 20-period moving average, tends to produce stronger reversals than one after a shallow move up.
Related Terms
Morning Star
A three-candle bullish reversal pattern consisting of a large red candle, a small-bodied candle (often a doji), and a large green candle. It signals the end of a downtrend.
Bearish Engulfing
A two-candle bearish reversal pattern where a large red candle completely engulfs the body of the preceding green candle. It signals strong selling pressure after a rally.
Dark Cloud Cover
A two-candle bearish reversal pattern where a red candle opens above the prior green candle's high and closes below its midpoint. It warns of weakening bullish momentum.
Three Black Crows
Three consecutive long red candles with progressively lower closes, each opening within the prior candle's body. It signals a strong bearish reversal or continuation.