What Is an Evening Star?

The evening star pattern is the bearish counterpart to the morning star. It forms after an uptrend and indicates a possible trend reversal. The structure is:

• A long bullish candlestick
• A small candlestick showing market hesitation
• A long bearish candlestick closing below the midpoint of the first candle

Evening Star Formation:

• Bulls control the first session, pushing prices high
• The second session introduces uncertainty
• Bears dominate the third session, signaling a trend reversal

Both patterns reflect a critical shift in market sentiment—either from bearish to bullish (morning star) or from bullish to bearish (evening star).

Key Takeaways

• Morning star pattern: Found after a downtrend; bullish reversal pattern
• Evening star pattern: Found after an uptrend; bearish reversal pattern
• Confirmation is key—look for strong third candles that close beyond the midpoint of the first
  

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