The Ultimate Guide to Evening Star Candlestick Patterns

Last updated: January 4, 2024

Evening Star Pattern

The evening star candlestick can signal a potential reversal from a previous uptrend. The pattern is made up of three candles: after a bullish candle, a star (which could be green or red) occurs on a gap up day, which is followed by a bearish candle that drives the price back within the body of the initial bullish candle:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes evening star patterns with the following characteristics:

Typical characteristics

• First candle shows strong bullish activity with an extended green body
• Second candle shows gap up day (star pattern)
• Third candle shows strong bearish activity, closing within the body of the first candle

Examples of use as a trading indicator

• Potential bearish reversal signal after an uptrend
• Resistance level near the highs of this pattern

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!