What Is an Evening Star Pattern?
The Evening Star is a bearish reversal candlestick pattern that typically appears at the top of an uptrend. It signals that buying momentum is fading and sellers may be taking control.
The pattern consists of three candles:
- A strong bullish candle
- A small indecision candle (bullish, bearish, or doji)
- A strong bearish candle closing deep into the first candle’s body
- Marks a potential reversal from bullish to bearish
- Considered one of the most reliable Japanese candlestick reversal patterns
- Stronger when it forms at resistance or a supply zone
How the Evening Star Pattern Forms
- Candle 1 (Bullish): Buyers dominate, pushing price higher.
- Candle 2 (Indecision): Market stalls, shown by a small-bodied candle.
- Candle 3 (Bearish): Sellers step in, closing near the lows and reversing momentum.
The defining feature is that the third candle closes well into the body of the first, confirming a bearish shift.
How Traders Use the Evening Star Pattern in Practice
Traders use the Evening Star with confluence for higher accuracy:
- Look for it at key resistance levels or supply zones
- Confirm with volume spikes or momentum indicators (e.g., RSI divergence)
- Enter short trades with a stop above the pattern’s high
- Combine with higher timeframe trend analysis for stronger setups
Why the Evening Star Pattern Matters
The Evening Star is valued for its clear, visual bearish signal:
- Helps traders spot early bearish momentum
- Works across forex, stocks, indices, and crypto markets
- Stronger when paired with support/resistance and liquidity zones
- Protects against chasing overextended rallies
Example of an Evening Star on EUR/USD
Imagine EUR/USD is trending higher around 1.0950:
- A strong bullish candle closes at 1.0965.
- A small indecision candle forms near 1.0968.
- A bearish candle follows, closing at 1.0950 — deep inside the first candle’s body.
This creates an Evening Star Pattern, suggesting a possible reversal to the downside.
