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Evening Star

An evening star is a three-candle bearish reversal pattern. It shows buying pressure, a pause, and then a stronger seller response.

At A Glance

  • Name: Evening Star
  • Category: Bearish Candle Patterns
  • Type: Bearish Reversal
  • Number of candles: 3 candles
  • Typical context: After an up move, breakout attempt, or push into resistance.

How To Identify It

  • Body: First candle is a strong green body, second is small, third is a strong red body.
  • Wicks: The middle candle may have wicks, but its small body is the main pause clue.
  • Relationship: The third candle closes below the midpoint of the first green candle body.

Look for a long green candle, a small middle body above it, and a long red candle that closes below the midpoint of the first green body. In the classic daily pattern, the middle body gaps above the first body. Intraday charts may show a similar reversal sequence without that gap; distinguish that sequence from the classic pattern.

Context

Evening star behavior is most useful when it appears after a clear move higher.

Evening stars matter most after a run up, near resistance, or after an extended move. The pattern is less useful when it forms inside a tight sideways range without a clear prior push.

What It Shows

The first candle shows buyers pressing. The middle candle shows that buying slowed. The third candle shows sellers stepping in strongly enough to take back part of the move.

What To Watch Next

Watch whether price stays below the third candle body and avoids reclaiming the middle candle area. That middle candle high becomes an important reference.

The read weakens if price reclaims the third candle body or moves back above the middle candle. That means the seller response did not hold.

Common Confusion

Do not confuse the small middle candle alone with the pattern. The three-candle sequence is the pattern.

Key Takeaway

An evening star shows a shift from buying pressure to seller response across three candles, especially after strength.

Related Lessons

Course Context

Chart Reading And Market Structure

Bearish Candle Patterns

Lesson 43

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