P
PipsGrowth

Key Takeaways

Success Rate:78%
Difficulty:Intermediate
Strength:
R:R Ratio:1:2.5
🌙

Evening Star

bearish reversalVery High Reliability3 Candles

Bearish counterpart to morning star. Long bullish candle, small star candle, then long bearish candle. Major reversal pattern.

Market Psychology

Buying exhausts, indecision follows, then sellers take control completely, signaling major sentiment shift.

Candle Structure

1st2nd3rd

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Evening Star PatternTake Profit📥 EntryStop LossPatternConfirmEnterSELLPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

UptrendEvening StarReversal ↓

Appears at the top of an uptrend, signals bearish reversal.

How to Identify

1

First candle: Long bullish candle in an uptrend

2

Second candle: Small body that gaps above first candle

3

Third candle: Long bearish candle closing below midpoint of first

4

Gaps enhance reliability but not required in forex

Confirmation Signals

RSI overbought (>70)
At key resistance
Volume spike
Bearish next candle

Trading Strategy

📥 Entry

Enter short at close of third candle

🛑 Stop Loss

Place stop above the star (middle candle) high

🎯 Take Profit

Target previous swing lows or support levels

⚖️ Risk/Reward

1:2.5

Common Mistakes to Avoid

Trading without prior uptrend
Not waiting for confirmation
Ignoring volume
Fighting strong trend

Pro Tips

💡Doji as the star increases reliability
💡Third candle should penetrate at least 50% of first candle
💡Volume pattern: high-low-high confirms the reversal

Best Timeframes

DailyWeekly

Pattern Variations

At resistance level (stronger)
With gap open
آخر تحديث: ٢٩ ديسمبر ٢٠٢٤

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Frequently Asked Questions