Bearish reversal

Evening Star

A three-candle top: a big green candle, a small indecisive 'star', then a big red candle — the rally rolls over.

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How the pattern looks on a chart

What it is

The first candle extends the uptrend, the small middle star shows buying exhaustion, and the third strong bearish candle closes deep into the first candle's body, confirming sellers have taken control.

What it signals

It marks a potential top and shift to a downtrend, strongest when the third candle erases most of the first.

How to spot it

Three candles: large bullish, small-bodied star (often gapping higher), then a large bearish candle. Look for it after a sustained advance or at resistance.

One caveat

Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.

Related terms

Morning StarBearish EngulfingShooting StarTrend

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