The candles of the pattern are ringed. An invented chart, drawn to show the shape. Not market data.
Also searched asevening star candle · evening doji star · bearish three candle pattern
How to recognise an evening star
- First: a long rising candle.
- Second: a small body near the highs.
- Third: a falling candle closing below the middle of the first candle’s body.
What it is taken to mean
It is read as a rise running out of buyers, a pause, and then sellers taking control.
What traders check next
- How far the third candle closes into the first.
- Whether the high of the middle candle meets a level that has capped the price before.
- What was scheduled: a release can print this shape and undo it within the hour.
Where people go wrong
- Selling before the third candle has closed.
- Reading it in a quiet range, where three such candles are ordinary.
- Treating it as the end of a long trend on the strength of three candles.
Questions people ask
- How is the evening star different from the morning star?
- It is the same idea in the other direction: it appears after a rise and ends with a falling candle.
- Does an evening star mean sell?
- No. It describes what buyers and sellers did during those candles. Studies of candlestick patterns find that, taken alone, they predict the next move only a little better than chance, if at all. It is one observation to weigh with others.
The words on this page
An explanation for study. It is not advice, a recommendation or a forecast, and a pattern or a situation described here says nothing certain about what a price will do next.