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Evening star

A three-candle topping pattern: a large green candle, a small indecisive candle, then a large red candle closing well into the first body.

The bearish mirror of the morning-star. A strong up candle, a stalling star that often gaps above it, then decisive selling that erases most of the advance.

It frequently appears at the end of a climactic run, and if the final candle arrives on the heaviest volume of the sequence, the story is that late buyers were distributed to.

Practical execution: entry on the close of the third candle or a break of its low, stop above the star's high, target the last significant swing-low or the value-area-high beneath. Be aware that in a strong uptrend, evening stars fail often. Pattern plus context plus a defined stop is the entire method; pattern alone is not.

Related: morning-star, abandoned-baby, doji-star, three-black-crows

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

The parts of a candlestickAn up candle and a down candle with the same high and low, labelled with open, high, low, close, the real body and the wicks.UP CANDLEclose above openHigh 41.00Close 40.30Open 38.20Low 37.40upper wickreal bodyopen to closelower wickDOWN CANDLEclose below openHigh 41.00Open 40.30Close 38.20Low 37.40Same high and low; only the open and close swap places.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.

Educational only, not advice. Spotted an error? Post in Site Feedback.