What is the Evening Star Pattern?

What is the Evening Star Pattern?

The Evening Star is a three-candle bearish reversal pattern that appears after an uptrend. It signals a potential shift from buying pressure to selling pressure.

Pattern Structure

• First candle: Strong bullish candle continuing the uptrend.
• Second candle: Small-bodied candle that gaps higher, showing indecision.
• Third candle: Bearish candle closing well into the first candle's body.
• Volume: Elevated volume on the third candle adds conviction.

Trading the Evening Star

• Entry: Consider short positions after price breaks the pattern low.
• Stop placement: Above the pattern high or nearby resistance.
• Targets: Prior support zones or measured moves.
• Context: The signal is strongest at significant resistance levels.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.