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Evening Star
Signal
Bearish
Win Rate
69%
Avg Move
-9.8%
Reliability
High

Pattern Definition

The evening star is a three-candle top reversal: a large bullish candle, a small-bodied candle gapping up, then a large bearish candle closing more than 50% into the first candle's body.

Market Psychology

Bulls gradually run out of energy at the highs. The small middle candle's gap shows bulls tried to continue but lacked conviction; the large bearish candle confirms bears have firmly taken over.

Trading Application

Reliable top-reversal signal after an uptrend (win rate 69%). Enter short after the third bearish candle closes. Stop-loss above the middle candle's high.

Important Notes

The bearish candle must close more than 50% into the first bullish candle. Presence of gaps strengthens the signal.