Evening star is a three-candlestick bearish reversal pattern that signals the end of an uptrend. It consists of a large bullish candle, followed by a small-bodied indecision candle (or doji), and then a large bearish candle. Like the evening star that appears before nightfall, this pattern warns of coming darkness (decline).
- Three-candle bearish reversal pattern
- Sequence: Bullish → Indecision → Bearish
- Appears at tops after uptrends
How Evening Star Forms
The pattern shows shift from bullish to bearish:
Evening Star Formation:
Day 1 Day 2 Day 3
(Green) (Small) (Red)
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Day 1: Strong buying continues uptrend
Day 2: Small body shows indecision (buyers exhausted)
Day 3: Strong selling shows bears taking over
Quick Reference: Evening Star Criteria
| Candle | Description | Requirement |
|---|---|---|
| First | Large bullish | Continues uptrend |
| Second | Small body/doji | Shows indecision |
| Third | Large bearish | Closes below first candle midpoint |
Example: Trading Evening Star
Evening Star at Resistance:
| Day | Open | Close | Pattern |
|---|---|---|---|
| 1 | ₹95 | ₹108 | Large green candle |
| 2 | ₹109 | ₹110 | Small doji at resistance |
| 3 | ₹108 | ₹96 | Large red, SELL/SHORT |
| Stop | - | ₹112 | Above pattern high |
| Target | - | ₹85 | Previous support |
Evening star is a three-candle bearish reversal: large green candle, small indecision candle, then large red candle. It signals the end of an uptrend. The third candle confirms the reversal. Most reliable at resistance levels.
Evening Star Variations
Classic Evening Star
Middle candle is a small body. Gaps add strength.
Evening Doji Star
Middle candle is a doji. Stronger signal of indecision.
Evening Star with Gaps
Gaps between candles increase reliability.
Confirmation Requirements
Third Candle
- Should be bearish (close < open)
- Should close below first candle’s midpoint
- Larger body = stronger signal
Volume
- Volume should increase on third candle
- Shows conviction behind the reversal
Location
- At key resistance levels
- After extended uptrend
Trading Strategy
Entry
- Enter short on close of third candle
- Or next day’s open
- For longs: Exit positions
Stop Loss
- Above the highest point of pattern (usually middle candle high)
- Gives room for minor retest
Target
- Previous support levels
- Measured move (pattern height projected down)
- Use trailing stop
Common Mistakes
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Not waiting for completion – Pattern isn’t confirmed until third candle closes.
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Ignoring location – Evening star at random location is weak.
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Third candle too small – Needs conviction. Small third candle = weak signal.
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Ignoring the trend – Evening star works after uptrends.
How JournalPlus Tracks Patterns
JournalPlus lets you tag evening star patterns at entry, tracking your success rate with this classic bearish reversal formation.
