Evening Star candlestick pattern

The Evening Star is a three-candlestick pattern that indicates a bearish reversal and the end of an uptrend. This pattern is one of the most popular candlestick formations and is suitable for identifying a top and selling your assets.

The counterpart of the Evening Star is the Morning Star. The Morning Star and Evening Star patterns are both trend reversal patterns that signal a change in direction. Each pattern contains a relatively short candlestick in the middle position (the 2nd candlestick). Despite their similarities, these patterns have opposite outcomes: the Evening Star indicates a bearish reversal, while the Morning Star - a bullish reversal.

Traders may also confuse the Evening Star with the Evening Doji Star pattern. They can be distinguished by the 2nd candlestick: the Evening Doji Star always has the doji candlestick. In addition, the 2nd candlestick of the Evening Star opens with a gap, but this isn't mandatory for the Evening Doji Star. In both cases, the 2nd candlestick represents the indecisiveness of the market.

Construction

1st

• candlestick in uptrend
• long green body

2nd

• short body
• much smaller than 1st and 3rd candlesticks, but not doji
• opens with price gap above high price of 1st candlestick
• candlestick close price is above 1st candlestick close price

3rd

• long red body
• candlestick open price above 2nd candlestick open price^①
• candlestick close price within the 1st candlestick body^②

The Evening Star should be confirmed on the following candles, by breaking the trendline or the nearest support zone formed by its first pattern candlestick.