Technical Glossary / Candlestick Patterns
Evening Star
A three-candle bearish reversal: a long up candle, a small-bodied pause, then a strong down candle.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
The evening star comes after a rally. A long bullish candle, then a small body that can gap up, then a bearish candle that closes well down into the first body, classically through its midpoint.
How to identify it
Three bars: large up, small, large down. The middle bar is the star. The third body should give back a real share of the first advance.
Bullish reading
A later close above the star's high voids the bearish pattern. The uptrend then still owns the higher high.
Bearish reading
At resistance, the sequence says the rally stalled and was sold. The star high is the risk reference for anyone trading the turn.
Common mistakes
Seeing an evening star in every three-bar pullback inside a trend. The first candle should be a genuine push, and the third a genuine give-back.
Limitations
Gaps between the star and its neighbours are part of the classic equity version and are often missing elsewhere. Do not force the label when the third candle is weak.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.