Evening Star Pattern - How to Identify & Trade

Evening Star Pattern

A powerful three-candle bearish reversal pattern that signals the end of an uptrend.

Bearish Reversal
1. Long bullish 2. Small body (gap up) 3. Long bearish Midpoint Close below midpoint

How to Identify

• Three-candle pattern at the top of an uptrend: The pattern must appear after a sustained move higher to be valid as a reversal signal.

• First candle is a long bullish candle: This confirms the existing uptrend is still in force, with strong buying pressure.

• Second candle is a small-bodied candle that gaps up: This can be a doji, spinning top, or any small body. The gap shows bulls made one last push, but momentum is fading.

• Third candle is a long bearish candle that closes below the midpoint of the first candle: This confirms the reversal. The deeper the third candle closes into the first candle's body, the stronger the signal.

How to Trade

Entry

Enter a short position below the close of the third candle. Some traders wait for a confirmation candle (a fourth bearish candle) to reduce false signals.

Stop-Loss

Place your stop-loss above the high of the second candle (the small body). This is the highest point of the pattern and invalidates the setup if broken.

Target

Target the next significant support level, or use a minimum 1:2 risk-to-reward ratio. Measure from entry to stop for your risk, then project 2x downward for your target.

Success Rate

72%
Historical success rate when confirmed with volume

The Evening Star pattern achieves roughly 72% reliability when the third candle closes on above-average volume. Without volume confirmation, the success rate drops to approximately 55-60%. The pattern is most effective on daily and weekly charts, and when it forms near a known resistance level or after an extended uptrend.

Frequently Asked Questions

The Evening Star is a three-candle bearish reversal pattern that appears at the top of an uptrend. It consists of a long bullish candle, a small-bodied candle that gaps up, and a long bearish candle that closes below the midpoint of the first candle. It signals that buying pressure is exhausting and sellers are taking control.
They are mirror opposites. The Evening Star is a bearish reversal pattern at the top of an uptrend, while the Morning Star is a bullish reversal pattern at the bottom of a downtrend. Both are three-candle patterns, but the candle colors and trend direction are reversed. The Morning Star has a long red candle, a small body gap down, and a long green candle closing above the midpoint.
Yes, the gap adds significance to the pattern. A gap up between the first and second candle shows that bulls pushed prices higher but could not sustain momentum. However, in forex and crypto markets where gaps are rare, a small-bodied second candle opening near the first candle's close is still considered a valid Evening Star.
The Evening Star Abandoned Baby is a stronger variation where the second candle (the doji or small body) gaps above the first candle AND the third candle gaps below the second candle. This double-gap formation is extremely rare but is considered one of the most reliable bearish reversal signals in candlestick analysis.
The Evening Star is most reliable on the daily and weekly timeframes. On these higher timeframes, the pattern reflects meaningful shifts in market sentiment over multiple trading sessions. While it can appear on intraday charts like 1-hour or 4-hour, the reliability decreases on shorter timeframes due to increased market noise.

Related Patterns

Morning Star

The bullish counterpart of the Evening Star, signaling reversals at the bottom of downtrends.

Shooting Star

A single-candle bearish reversal pattern with a long upper wick and small body near the low.

Engulfing Pattern

A two-candle reversal pattern where the second candle completely engulfs the first candle's body.

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