Key Takeaways
Evening Star
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
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Appears at the top of an uptrend, signals bearish reversal.
How to Identify
First candle: Long bullish candle in an uptrend
Second candle: Small body that gaps above first candle
Third candle: Long bearish candle closing below midpoint of first
Gaps enhance reliability but not required in forex
Confirmation Signals
Trading Strategy
š„ Entry
Enter short at close of third candle
š Stop Loss
Place stop above the star (middle candle) high
šÆ Take Profit
Target previous swing lows or support levels
āļø Risk/Reward
1:2.5
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Shooting Star
A small body at the bottom of the candle with a long upper shadow (at least 2x the body). Appears at the top of an uptrend.
Hanging Man
Same shape as hammer but appears at the top of an uptrend. Small body with long lower shadow indicates potential bearish reversal.
Bearish Engulfing
A large bearish candle completely engulfs the previous bullish candle. One of the most reliable bearish reversal patterns.