Bearish Evening star: identifying the end of an uptrend in three candles

The Evening star is a three-candle bearish reversal pattern that appears after an uptrend. A long bullish candle is followed by a small-bodied candle that gaps above it, and then by a long bearish candle that closes deep into the body of the first candle. The pattern shows buying momentum fading and sellers taking control.

What does an Evening star look like?

The pattern forms over three consecutive candles:

• First candle: A long bullish (white or green) candle that continues the existing uptrend.
• Second candle: A candle with a small body, the "star," whose body gaps above the body of the first candle. The star can be bullish or bearish.
• Third candle: A long bearish (black or red) candle whose body stays below the star's body and that closes below the midpoint of the first candle's body.

The gap above the first candle only needs to be between the bodies. The shadows of the star can overlap with the shadows of the candles on either side.

What does the pattern tell you?

The first candle shows that buyers are confident and pushing prices higher. The star opens higher still, but the session produces only a small move in either direction. This shows that buying has slowed and sellers are starting to meet demand. When the third candle opens lower and falls well into the first candle's range, it shows that sellers have taken over.

Taken together, the three candles describe a shift from strength to hesitation to selling pressure. Many traders read this as a sign that the uptrend may be ending.

How reliable is the Evening star?

The Evening star is one of the better-known reversal patterns, and its third candle provides confirmation that two-candle patterns lack. Traders still look for extra evidence before acting on it:

• Prior trend: The pattern only has meaning after a clear uptrend.
• Depth of the third candle: A close further into the body of the first candle shows stronger selling.
• Volume: Higher volume on the third candle suggests more sellers took part.
• Context: A pattern that forms near a resistance level or in overbought conditions, for example on the RSI, carries more weight.

How does the Evening star differ from the Evening Doji star?

The two patterns differ only in the middle candle. In an Evening star, the star has a small but visible body. In an Evening Doji star, the star is a Doji, with almost no body at all. Many traders consider the Doji version a slightly stronger warning, because it shows complete indecision. When the middle candle is separated from both neighbors by full gaps, including the shadows, the pattern becomes an Abandoned baby. The Morning star is the bullish counterpart of the Evening star.

What are the limitations of the pattern?

Like any candlestick pattern, the Evening star describes what has happened, not what will happen. The uptrend can resume after the pattern completes. Because the third candle has already moved a long way down, much of the price move may be over by the time the pattern is complete. Gaps between bodies are also rare in markets that trade around the clock, such as crypto and forex. Traders often place a stop-loss above the high of the star to limit losses if the reversal fails.

How to find the Evening star on TradingView

TradingView can detect this pattern for you on any chart:

• Built-in indicator: Open Indicators and search for Evening star (bearish). The indicator marks each occurrence on the chart.
• All candlestick patterns at once: Add the All candlestick patterns indicator to see every supported pattern on one chart and choose which ones to display in its settings.
• Trend filter: In the indicator settings, choose how the prior trend is detected (based on SMA 50, or SMA 50 and SMA 200), or turn trend detection off.
• Alerts: Create an alert on the indicator to get notified when a new pattern forms.

Understanding the Evening star

The Evening star is a three-candle pattern made up of a long bullish candle, a small-bodied candle that gaps above it, and a long bearish candle that closes below the midpoint of the first candle. It signals a possible reversal from an uptrend to a downtrend. The third candle provides built-in confirmation, but traders still check volume, the next candles, and other indicators before acting on it.