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Evening Star Candlestick Pattern Trading Simply

Uncover the Evening Star candlestick pattern, its name origin, and trading techniques in this resource.


When trading in financial markets, relying solely on intuition or emotions is not sufficient. It is also necessary to understand the reasons behind price movements, whether they rise or fall. In this context, Japanese candlestick patterns are among the most preferred technical analysis tools that reflect the psychology behind price movements. The "Evening Star" candlestick pattern holds a special place in candlestick analysis and forms the main topic of our article today.

Evening Star candlestick pattern image.
The Evening Star

Topic: Evening Star

Type: bearish

Trend direction: reversal

Opposite pattern: Morning Star

What is the "Evening Star" candlestick pattern?

The Evening Star is a candlestick pattern that indicates a reversal of an upward trend. This pattern is a major candle formation that suggests that the upward trend in the markets is coming to an end and a downward trend may follow. The Evening Star candlestick formation consists of three candles:

1. Bullish Candle: The first candle is a long bullish candle that indicates the continuation of the uptrend. It is usually represented as a green candle with a long body.

2. Star Candle: When the bulls weaken, a "star" candle is usually formed, often in red color and with a small body. This candle may have a short wick or sometimes no wick at all. It can rarely appear in green color as well. Additionally, in some cases, this star-like candle may form after a gap above the first candle. Moreover, after the star candle, a downward gap may also occur.

3. Bearish Candle: The third candle is a long bearish candle that forms after the star candle. This candle has a long body and is usually red in color, with a length at least half of the body of the first candle (green/bullish candle).

When the Evening Star pattern is completed, it triggers sellers for a trend reversal. From this point onwards, prices start to decline. Therefore, the Evening Star pattern is generally known as a pattern indicating the end of an uptrend and the possible beginning of a downtrend.

Why is it called "Evening Star"?

The name of the "Evening Star" candlestick pattern comes from its symbolic meaning. This pattern's name draws attention to references to stars in the sky and mythological elements. The word "Evening" represents the end of the day, while "Star" symbolizes the evening star seen approaching the end of the day. This metaphorically signifies the end of an uptrend with the sighting of the star and the beginning of a new trend. The evening star is a bright star that appears after sunset and heralds the night. Similarly, the "Evening Star" pattern is a candlestick formation that signals a transition to a downtrend.

How to trade with the "Evening Star" candlestick pattern?

Once the Evening Star candlestick pattern is completed, it usually indicates the end of an uptrend and the start of a downtrend. If the pattern appears near a strong resistance level, it can provide a more reliable trading signal. When the Evening Star pattern appears on a chart, it can be a signal to take a sell position, assuming that a downtrend is about to begin. However, it is important to use other technical indicators to confirm the "Evening Star" pattern before making any trades.

Selling: A short position can be opened after the close of the red candle.

Stop Loss: The stop loss order can be placed above the highest level of the Star candle.

Target: When determining the take-profit point, we can use risk-reward ratios, moving averages, and other tools.

Let's examine an example of trading with the Evening Star candlestick formation in the British Pound/Swiss Franc currency pair:

See how the Evening Star pattern influences GBP/CHF trading.
The Evening Star on the GBP/CHF chart.

An aspect not to be overlooked: Forex is a risky market. Like any candlestick pattern in financial trading, the "Evening Star" pattern can give false signals. Therefore, it should not be used alone. It should be your priority to verify with other analysis tools.

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