Candlestick patterns
Evening star pattern
Three candles after a rise: a big green candle, a small indecision candle, and a strong red candle that closes below the middle of the first.
Why it works
The rally loses momentum and sellers step in decisively. At resistance or in premium it often marks the top of a move.
How to use it
Sell after the third candle closes, with the stop above the pattern’s high. Target the last higher low or liquidity below.
The typical mistake
Selling it when the higher timeframe is in a powerful uptrend with no resistance above.
FAQ
What is Evening star in trading?
Three candles after a rise: a big green candle, a small indecision candle, and a strong red candle that closes below the middle of the first.
How do you trade Evening star?
Sell after the third candle closes, with the stop above the pattern’s high. Target the last higher low or liquidity below.