What is Evening Star?
Evening Star is a three-bar descending reversal pattern formed at the high point of an uptrend, and is one of the most reliable bearish signals among candlestick patterns. As the name ‘Evening Star’ suggests, it signals the end of a bright bull market.
It's the exact mirror image of Morningstar — just the direction is opposite, and the analysis principles are the same.
3 stages of evening star formation
1st candle: Strong candle (confirming upward trend)
A big candle with buyers taking the lead. It creates the illusion that the upward trend is still strong.
2 rods: Small rod (strength exhaustion)
A top type or doji with a very small body. Starting with a gap up creates a stronger signal.
- The appearance of this pole floating alone above means ‘star’
3rd candle: Large negative candle (transfer of leadership)
A strong black candle that retraces **more than 50% of the body of the first candle. It is even more powerful if you start with a gap down.
Condition Checklist
| Conditions | standards |
|---|---|
| Appearance location | High after upward trend |
| 1 bag | Big beekeeping |
| 2 bags | Small Body (Doji Best) |
| 3 bars | Large negative candlestick, 50%+ retracement of the first candle body |
| Trading volume | Explosive increase in 3 peaks |
Reliability check
Evening Doji Star
When the 2nd candle is a Doji candle — the highest rated bearish reversal signal.
| Evening Star | Evening Doji Star | |
|---|---|---|
| 2 bags | small torso | DOJI (opening price = closing price) |
| Reliability | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Trading volume is key
| bong | Ideal Trading Volume |
|---|---|
| 1 bag | High |
| 2 bags | Low (lull) |
| 3 bars | Explosively High ← Required Check |
Futures trading short strategy
Basic trading settings
Entry conditions:
✅ Evening star appears after an upward trend
✅ Major resistance line or overvalue zone
✅ With RSI 70+
✅ Confirmation of 3-bar trading volume explosion
Trading Plan:
Entry: Closing price of the 3rd candle (negative candle) or opening price of the next candle
Stop Loss: Above Evening Star High (2-Bar High)
Goal 1: 1 bar open (full retracement of pattern)
Target 2: Immediate support line
Practical example
BTC/USDT daily scenario:
- After 45 days of rise, $105,000 resistance level is reached.
- Evening Doji Star Appears
- RSI: 78 (extremely overbought)
- 3-bar volume: 310% of 45-day average
Entry: $102,000 (3rd closing price)
Stop Loss: $106,500 (2nd highest price + 1%)
Goal 1: $97,000 (market price for 1 bag)
Target 2: $92,000 (major support)
Risk:Reward = 1:5+
Leverage recommended
| Timeframe | Leverage |
|---|---|
| Daily Evening Star | 3 to 7 times |
| 4 hour bar | 2~5 times |
| 1 hour bar | 1~3 times |
When Evening Star fails
- Mid-term adjustment during a strong bull market: When the rise resumes after the 3rd peak.
- Three bars without trading volume: Falling without power → Possibility of a rebound soon
- Absence of important support line: If there is no strong support line below the 3rd candle, it is unclear whether the decline will continue.
Morning Star vs Evening Star Comparison
| Morning Star | Evening Star | |
|---|---|---|
| Emerging Trends | After the decline | After the rise |
| signal | 🟢 Upside reversal | 🔴 Decline reversal |
| Trading direction | Long | Short |
| Reliability | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Related guides
- Morning Star Pattern (Opposite Signal) →
- Evening Doji Star →
- Differences from Shooting Star →
- bearish engulfing pattern →
- Three Black Crows Pattern →
- Position size calculator →