Evening Star
bearish reversal signal · 3 candles · reliability 5/5
A three-candle bearish reversal pattern: large green candle, small indecision candle, then large red candle as sentiment deteriorates.
The Evening Star is the mirror image of the Morning Star and appears as a reversal pattern near the end of an uptrend. The first candle shows strong buying with a large green body, the second shows a pause with a small body that often gaps higher, and the third shows aggressive selling with a large red body that often gaps lower. The three candles map a shift in psychology from optimism to indecision, then from indecision to selling pressure. The name refers to the evening appearance of Venus.
What does it signal? A three-candle reversal pattern at the top of an uptrend: large green body → small indecision candle, the “star” → large red body. The Evening Star is a classic bearish reversal signal.
When is it reliable? After a prolonged uptrend, especially when the middle candle gaps higher and the third red candle closes below the midpoint of the first green candle. Rising volume on the third candle is ideal.
When to avoid it? In a weak trend — if the prior advance is short and flat, the pattern does not carry much reversal weight. It is also less useful before major news or during low-liquidity periods.
Anatomy and identification rules
Candle anatomy
- 1
First candle: large green body within an uptrend
- 2
Second candle: small body, ideally with an upward gap
- 3
Third candle: large red body, ideally with a downward gap
- 4
The third candle closes at least 50% down into the first candle’s body
Identification rules
- Forms after a clear uptrend
- The second candle has a small body — it can be green, red, or a doji
- Gaps appear between the first and second candles and between the second and third candles
- The third candle closes at least halfway into the first candle’s body
- Volume increases on the third candle
Pattern in chart context
What it says about the market
Context of appearance: The pattern is most relevant near the end of an extended uptrend, especially around an important resistance level. It is one of the more reliable reversal patterns on daily and weekly charts.
Market psychology in three steps
- 1
Strong green candle. The first day prints a large green body on high volume — buyers dominate, and bullish enthusiasm is widespread.
- 2
Star — balance. The second candle has a small body and often opens with an upward gap, but price fails to push much higher by the close. Buyer strength fades and sellers begin to appear.
- 3
Strong red candle. The third candle prints a large red body as sellers take back at least half of the prior advance. Market sentiment has flipped, and a new decline may begin.
Same shape, opposite meaning
The Evening Star and the Morning Star look identical. The difference lies in context — mistake one for the other and you enter in the opposite direction. The candle shape alone is never enough: always read the trend first, then the pattern.
Most common mistakes
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Size of the star. The middle candle’s body needs to be small, with a doji being the strongest version. If it has a large body, the pattern is weaker and starts to resemble a Three Inside Down.
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Entering on the second candle. The star, or second candle, is not an entry point on its own — the confirming red close matters. Early entries often produce false signals.
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Missing trend context. The pattern is valid only after an uptrend. In a falling market, a similar structure is usually just a pause, not a reversal.
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Stop loss above the star. A cleaner stop sits 1–2% above the upper wick of the full pattern. A stop placed just above the star’s body is usually too tight and can be taken out by the next candle’s wick.