Evening Star
The Evening Star is a three-candle bearish reversal pattern forming at uptrend tops — a large bullish candle, a small indecision candle, and a large bearish confirmation candle.
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How to Identify
Price is in a defined uptrend with higher highs and higher lows over at least 8-15 bars
First candle is a large bullish (green) candle with a real body covering at least 60% of its total range
Second candle has a small real body (spinning top or doji) that gaps up from the first candle's close — the body should be less than 30% of the first candle's body
Third candle is a large bearish (red) candle that closes below the midpoint of the first candle's real body
Volume should increase on the third candle relative to the 20-bar average, confirming selling conviction
Shadows on the second candle may extend in either direction — the key feature is the small body showing indecision at the top
Trading Rules
Entry Rules
- Wait for the third candle to close before entering — the close below the first candle's midpoint is the confirmation
- Enter short at the close of the third candle or at the open of the next bar
- Volume on the third candle should exceed the 20-bar average — low-volume third candles produce weaker signals
- Verify risk-to-reward is at least 1:2 using the stop above the second candle's high and the target at the nearest support
- Additional conviction comes when RSI is above 70 or price is at a known resistance level during the pattern formation
Exit Rules
- Primary target: nearest significant support level or measured move equal to the height of the three-candle pattern
- Secondary target: next major support zone or 2x the initial risk amount for partial position
- Move stop to break-even after price moves 1R (one risk unit) in your favor
- Exit if price closes above the high of the second candle (pattern star) within 3 bars — this invalidates the pattern
- Time-based exit: close the position if price stalls and fails to reach the primary target within 5-7 bars
Measure the distance from the high of the second candle (the star) to the low of the first candle. Subtract that distance from the close of the third candle. For example, if the star high is 520, the first candle low is 490, and the third candle closes at 498, the target is 498 - 30 = 468.
Place the stop loss above the high of the second candle (the star), adding a 0.2-0.5% buffer to account for noise. The star's high is the natural invalidation point — if price exceeds it, the bearish reversal thesis is broken.
Success Rate
65-72% as a bearish reversal on daily charts when the third candle closes below the midpoint of the first candle and volume increases on the third candle
Success rates vary based on market conditions, timeframe, and trader experience. Always validate patterns with your own journal data.
Journaling Tips
Screenshot all three candles with the preceding uptrend visible for context
Record the body sizes of all three candles and the gap distance between candle one and two
Note whether the third candle closed below the midpoint or the entire body of the first candle — deeper closes correlate with stronger reversals
Track volume on each of the three candles relative to the 20-bar average
Log the RSI or momentum reading at the time of the pattern to study which overbought levels produce the best evening star outcomes
The evening star is one of the most recognized bearish reversal patterns in candlestick analysis — a three-candle formation that signals the exhaustion of an uptrend and a likely shift to bearish price action. Unlike single-candle patterns that rely on one session’s price behavior, the evening star unfolds over three sessions, giving traders a structured narrative: bullish momentum (first candle), indecision at the top (second candle), and bearish conviction (third candle). This progression makes the evening star particularly reliable on daily and weekly charts for swing traders and position traders.
The Three-Candle Structure
The evening star tells a story across three consecutive candles. Understanding what each candle represents is essential for accurate identification and confident execution.
| Candle | Name | Body | Meaning |
|---|---|---|---|
| First | Bullish continuation | Large green body covering 60%+ of total range | Buyers are firmly in control, extending the uptrend |
| Second | The star (indecision) | Small body (spinning top or doji), gaps up from first candle’s close | Momentum stalls — neither buyers nor sellers dominate |
| Third | Bearish confirmation | Large red body closing below midpoint of first candle | Sellers seize control, confirming the reversal |
The gap between the first and second candles is significant. In equity markets, this gap often appears as a literal price gap on daily charts. In 24-hour markets like forex or crypto, the gap may manifest as a small-bodied candle opening near the first candle’s close with very little follow-through to the upside. The key requirement is that the second candle’s body is small relative to the first candle — reflecting indecision, not continuation.
How to Identify the Evening Star
The pattern requires a clear preceding uptrend. Without an established move higher over at least 8-15 bars, the three-candle formation does not qualify as an evening star regardless of how cleanly the candles match the template. Context is everything.
The first candle must be a strong bullish candle — one that would give traders no reason to suspect the uptrend is ending. This sets the trap. The second candle then opens with a gap up (or near the first candle’s high) but fails to extend the move, closing with a small body. This indecision after a strong bullish candle is the first warning sign. The third candle confirms the reversal by opening lower and closing deep into the first candle’s body, ideally below its midpoint. The deeper the third candle penetrates, the stronger the signal.
Volume behavior matters. Ideally, volume on the first candle is normal, volume on the second candle is low (reflecting the lack of conviction), and volume on the third candle surges above the 20-bar average as sellers step in aggressively.
Trading Rules for the Evening Star
Entry
The confirmation point is the close of the third candle. Entering before the third candle completes — for example, shorting during the second candle because it looks like a doji at a high — exposes you to a pattern that may never complete. Many star candles at uptrend highs are followed by another bullish candle rather than a bearish reversal.
Enter short at the close of the third candle or at the open of the next bar. Confirm that volume on the third candle exceeds the 20-bar average and that the third candle closed below the midpoint of the first candle’s body. If these conditions are met and risk-to-reward is at least 1:2, the trade qualifies.
Stop Loss and Target
The stop goes above the high of the second candle (the star), plus a buffer of 0.2-0.5%. This is the invalidation level — if price pushes above the star’s high, the reversal has failed and buyers remain in control.
For the primary target, measure the height of the entire pattern from the star’s high to the first candle’s low and subtract that distance from the third candle’s close. Alternatively, target the nearest support level identified from previous swing lows or demand zones.
Evening Star on Indian Stocks — Real Examples
The evening star appears frequently on NIFTY 50 daily charts, particularly after extended rallies into round-number resistance levels. When NIFTY pushes into levels like 22,000 or 23,000 on strong momentum and prints a small-bodied doji or spinning top the following day, traders watch closely for a bearish third candle to complete the evening star.
On RELIANCE daily charts, evening star patterns have historically formed at the end of 10-15 day rallies when the stock approaches previous all-time highs or significant Fibonacci extension levels. The third candle often gaps down on higher-than-average volume as institutional traders take profits. HDFC Bank has shown similar behavior at resistance zones where the stock stalls after earnings-driven rallies — a large bullish candle on results day, a small indecision candle as the market digests the news, and a bearish candle as profit-booking begins.
For Indian traders, evening star patterns on daily charts of NIFTY constituents are most reliable when they coincide with the stock reaching an overbought RSI reading above 70 and when the broader market index is also showing signs of exhaustion.
How to Journal Evening Star Trades
| Journal Field | What to Record | Why It Matters |
|---|---|---|
| Pattern Type | Evening Star | Filter all evening star trades for review |
| Trend Length | Bars and percentage of prior uptrend | Determine which uptrend sizes produce the best reversals |
| Star Type | Doji, spinning top, or small body | Track whether doji stars outperform other star types |
| Third Candle Depth | Close relative to first candle midpoint | Validate whether deeper penetration improves outcomes |
| Volume Profile | Volume on each of the three candles | Confirm the ideal volume pattern (normal, low, high) |
| Resistance Context | Was the pattern at a known resistance? | Measure how confluence with resistance affects win rate |
| Entry Timing | Close of third candle vs next bar open | Find your optimal entry approach |
After logging 30 or more evening star trades, filter by star type, third candle depth, and volume profile to discover which configurations work best for your trading style. Traders using JournalPlus often find that evening stars with doji second candles and third-candle volume above 1.5x average significantly outperform the baseline. Use JournalPlus’s pattern tags and custom filters to surface these insights — tag each trade with “evening-star” and rate setup quality from 1 to 5 to build a statistical edge over time.
Evening Star vs Related Bearish Patterns
The evening star is sometimes confused with the shooting star or hanging man. The key difference is structure: the shooting star and hanging man are single-candle patterns, while the evening star requires three candles. The engulfing pattern is a two-candle formation. The evening star’s three-candle structure provides more information and typically offers a higher-conviction signal because it shows the full transition from bullish control to indecision to bearish control — a narrative that single-candle patterns compress into one session.
The morning star is the bullish counterpart of the evening star. Where the evening star forms at uptrend tops, the morning star forms at downtrend bottoms with the inverse candle sequence: a large bearish candle, a small indecision candle, and a large bullish confirmation candle. Traders who master both patterns can identify reversals in both directions.
Tracking Your Edge with JournalPlus
Pattern recognition alone does not create an edge — consistent tracking and review does. JournalPlus lets you tag every evening star trade, record the specific conditions (star type, volume, RSI, resistance context), and analyze your results over time. By filtering your trade journal for evening star entries, you can answer questions that generic backtests cannot: which configurations work best for your specific markets, timeframes, and execution style. Track, review, and refine — that is how pattern traders build durable skill.
Common Mistakes
Entering short after the second candle (the star) without waiting for the bearish third candle to confirm the reversal
Confusing the evening star with the morning star — the morning star is the bullish mirror image that forms at the bottom of a downtrend
Ignoring the depth of the third candle's close — a third candle that closes above the first candle's midpoint is a weak signal and not a textbook evening star
Accepting a second candle with a large body instead of a small body — the indecision element (spinning top or doji) is essential to the pattern
Trading the pattern in a sideways range where there is no uptrend to reverse
Placing the stop below the third candle's close instead of above the second candle's high — this inverts the logic and leads to premature exits
Frequently Asked Questions
What is the evening star pattern in candlestick trading?
The evening star is a three-candle bearish reversal pattern that forms at the top of an uptrend. It consists of a large bullish candle, a small-bodied indecision candle (the star) that gaps up, and a large bearish candle that closes below the midpoint of the first candle. The pattern signals that buying momentum is exhausting and sellers are gaining control.
How do you trade the evening star pattern?
Wait for all three candles to complete. Enter short at the close of the third candle or the open of the next bar. Place your stop above the high of the second candle (the star). Set your primary target at the nearest support level or use the measured move technique — subtract the pattern height from the third candle's close. Only take the trade if risk-to-reward is at least 1:2.
What is the difference between an evening star and a morning star?
The evening star and morning star are mirror-image patterns. An evening star forms at the top of an uptrend and signals a bearish reversal — it starts with a bullish candle and ends with a bearish candle. A morning star forms at the bottom of a downtrend and signals a bullish reversal — it starts with a bearish candle and ends with a bullish candle. Both require a small-bodied star candle in the middle.
Is the evening star pattern bullish or bearish?
The evening star is a bearish reversal pattern. It signals the end of an uptrend and the beginning of a potential downtrend. The name comes from the analogy to Venus appearing in the evening sky before nightfall — the star candle appears before a period of bearish price action.
How reliable is the evening star pattern?
The evening star has a 65-72% success rate on daily charts when the third candle closes decisively below the first candle's midpoint and volume increases on the third candle. Reliability improves when the pattern forms at known resistance levels, when RSI is above 70, and when the prior uptrend has been extended. On lower timeframes below 1 hour, accuracy drops significantly due to market noise.
What confirms an evening star candlestick pattern?
The third candle is the primary confirmation — it must be a large bearish candle that closes below the midpoint of the first candle's body. Additional confirmation comes from above-average volume on the third candle, RSI divergence or overbought readings, and the pattern forming at a resistance level. Some traders wait for a fourth bar to close below the third candle's low for extra confirmation.
Does the second candle in an evening star have to be a doji?
No. The second candle (the star) does not have to be a doji, though a doji makes the pattern stronger. The requirement is a small real body that shows indecision — a spinning top, doji, or any candle where the body is significantly smaller than the first candle's body. When the star is a doji, the pattern is sometimes called an evening doji star, which is considered a higher-probability variant.
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