Evening Star Candlestick Pattern

What the Evening Star pattern means

The pattern shows heavy buying, then indecision as the rally stalls, then strong selling that reverses direction. The small middle candle is the turning point, and the strong third candle confirms sellers have taken control.

How the Evening Star is traded

• →Enter short after the third candle confirms by closing deep into the first candle's body.
• →The deeper the third candle closes into the first, the stronger the signal.
• →Stop goes above the high of the middle candle.
• →Most reliable at resistance after a clear uptrend.

Common mistakes

• ✕Shorting the middle candle before the third confirms.
• ✕Entering late after the third candle has already fallen far.