Evening Star Explained & Backtested 2025

The evening doji star candlestick pattern is similar to the evening star. They are both three-bar patterns commonly thought of as bearish reversals. The difference between the evening doji star and the evening star is that the evening doji star’s middle candle is exactly that–a doji. Similar to the evening star, the morning star consists of a large first candle, followed by a small-bodied candle, and finally a large third candle. Different from the evening star pattern, the morning star starts with a bearish candle but closes with a long bullish candle.

Factors like low trading volume, unexpected news, or a strong prevailing trend can sometimes make the pattern unreliable. That’s why traders rely on confirmation to filter out false signals and make evening star candlestick more informed decisions. To confirm the evening star pattern, wait for the third bearish candle to close. Other technical indicators, such as volume or moving averages, can provide additional confirmation.

• This serves as confirmation of the sell-off and increases the probability that the pattern will lead to a reversal.
• The Relative Strength Index is commonly used to predict areas where an Evening Star pattern is more reliable in signaling a bearish reversal.
• The idea is that the resistance level has already shown a barrier to further price increases, and the Evening Star indicates that sellers are ready to push the price down.

WR Trading is not a broker, our virtual simulator offers only simulated trading of a demo account. Prices, market execution can be different from real market situations. As shown, we can observe a significant volume spike on the pattern’s third candle.

• It’s simple, the Evening Star pattern is traded when the low of the last candle is broken.
• If it’s money and wealth for material things, money to travel and build memories, or paying for your child’s education, it’s all good.
• However, having been in an uptrend for quite some time, more and more people are becoming worried that the market has gone too far, and will revert soon.
• Finally, the third one is a large bearish candlestick that affirms the momentum shift from bullish to bearish.
• If the price is higher than the upper band, the market has overextended itself to the upside, and we can expect it to soon turn around, being typical behavior of a mean-reverting market.

What are Examples of an Evening Star Candlestick Pattern?

All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. Traders would take a short entry once the price fell below the shooting star candle and use the candle above that as a stop level. This example shows that the price reversed and went into a downtrend, creating a falling wedge pattern.

Evening Star Doji:

Mastering its identification and using it alongside other technical tools can help you make more informed and strategic decisions. In conclusion, mastering the art of recognizing and trading the Evening Star candlestick pattern equips traders with a valuable tool for navigating the stock market. Keep a vigilant eye on the Evening Star, and it could become a pivotal component of your trading strategy.

Essential Candlesticks

You are expected to do your own research and testing to determine the validity of a trading method, system, or strategy on the market and instrument you wish to trade. The second candlestick must be larger than the body of the first candle for the Three White Soldiers pattern to be legitimate. The final candlestick must be at least the size of the second candle and have little to no shadow to complete the Three White Soldiers pattern. The Evening Star Candlestick pattern usually appears at the top of an uptrend. Each peak and trough that follows is higher than those that were discovered earlier in the trend.