Evening Star
🌙 Evening Star Candlestick Pattern – The Signal of an Ending Uptrend
The Evening Star candlestick pattern is a powerful bearish reversal signal that appears at the top of an uptrend. It consists of three candles and represents a shift from bullish optimism to bearish control — a classic warning that the uptrend may be coming to an end.
Illustration: The Evening Star — strong green candle, small indecision, and a large red reversal candle
📘 What Is an Evening Star?
The Evening Star is a three-candle pattern that signals a potential reversal from bullish to bearish trend. It appears after an uptrend and typically marks the “evening” — or the end — of bullish momentum.
- 1st Candle: A large green candle showing strong bullish momentum.
- 2nd Candle: A small-bodied candle (Doji or neutral) indicating market indecision.
- 3rd Candle: A large red candle that closes deep into the first candle’s body, confirming a bearish reversal.
Chart Example: Evening Star pattern forming at the top of an uptrend
💡 Market Psychology Behind the Evening Star
The first large green candle represents strong bullish enthusiasm. The second candle (often a Doji or small body) shows hesitation — buyers start to lose strength. Finally, the third large red candle confirms the reversal, showing that sellers have taken control of the market.
⚠️ Pro Tip: The Evening Star becomes more reliable when it forms near a resistance zone or key psychological price level.
⚙️ How to Trade the Evening Star Pattern
- Identify a strong uptrend and spot the three-candle Evening Star formation.
- Wait for the third candle (red) to close below the midpoint of the first green candle.
- Enter a short (sell) position at the close of the third candle.
- Place a stop-loss just above the high of the pattern.
- Set a profit target at the next support or a 1:2–1:3 risk/reward ratio.
Example: Third candle confirms reversal and entry opportunity
📊 Confirmation Signals
- Bearish divergence on RSI or MACD.
- High trading volume on the third candle.
- Formation near a historical resistance area.
🏁 Conclusion
The Evening Star candlestick pattern is one of the most reliable indicators of a trend reversal from bullish to bearish. When confirmed with volume, indicators, and resistance levels, it becomes a powerful entry signal for traders.
“When the evening star rises — the bulls begin to fade, and the bears take the stage.”