Evening Star Candle Pattern in Forex 

There’s a pattern that often shows up just before markets turn—the Evening Star. Yes, you must understand it if you want to catch trend reversals early, manage exits with precision, and spot fading momentum before others do. The pattern forms clearly, works across Forex, stocks, and crypto, and reveals when bullish energy starts to fail. 

So let’s break it down. You’ll learn how it forms, when to trust it, how to confirm it, and how to trade it in Forex with better confidence.

What Is the Evening Star Candlestick Pattern?

The Evening Star candlestick pattern signals a potential bearish reversal at the end of an uptrend. It’s a three-candle formation that helps traders detect when buying momentum weakens and sellers may soon take over.

A strong bullish candle sets the stage. Then comes a smaller candle that shows hesitation. The final candle flips the tone—sellers take charge, and prices drop. The pattern warns that buyers have lost strength and momentum has turned.

The Evening Star Candlestick Pattern is popular because it:

• Visually shows momentum change from bullish to bearish
• Provides early entry signals for short positions
• Helps confirm exits from long positions
• Works well with RSI, volume, and moving average confluence zones

You should also note that its opposite pattern is the Morning Star, which signals bullish reversal after a downtrend.

Other than Forex, you can use the Evening Star on stock charts, crypto pairs, and commodity markets too. The pattern works across timeframes and helps spot reversals before major drops.

According to TradingView and Forex Academy data, Evening Star patterns often lead to short-term price drops, especially when paired with overbought RSI or resistance zones.

How the Evening Star Pattern Forms?

The Evening Star takes shape across three candles at the top of an uptrend. Each candle marks a shift from buying pressure to selling control.

• The first candle appears large and bullish. Price opens low and closes high. Buyers stay in charge.
• The second candle forms with a small body. Price barely moves. Market stalls. Momentum fades. This candle signals hesitation from both sides.
• The third candle opens near the second, but sellers take over. A long red candle closes well below the midpoint of the first green candle. That confirms a shift in sentiment.

For example, a crypto pair rises from $1800 to $1900. A strong green candle opens at $1880 and closes at $1920. The next day, a small-bodied candle opens at $1922 and closes at $1925. Momentum slows. On the third day, a red candle opens at $1920 and drops to $1850. That’s a clear Evening Star. So, sellers are now dominating, which means traders can exit long trades or prepare for shorts.

It should be clear that gaps between the candles make the setup stronger. A Doji as the second candle increases the chance of reversal. Volume confirmation and key resistance levels add further confidence.

How to Identify the Evening Star on Forex Charts?

Let’s say EUR/USD climbs steadily across sessions. One session opens at 1.0870 and closes at 1.0935. Strong bullish push. The next day, price barely moves—opens at 1.0940, closes at 1.0948. The market loses steam. In the third session, price opens lower at 1.0930 and falls sharply to close near 1.0850. That’s a textbook Evening Star.

Now step back and look at what you just saw.

First comes solid upside movement. Buyers push prices higher with force. That builds the first long bullish candle.

Then, momentum stalls. Price holds steady. A narrow candle forms. It might lean red, green, or even show a Doji.

Finally, pressure shifts. Bears step in. Price drops fast. The third candle finishes near or below the midpoint of the first. That’s when the reversal becomes visible.

You must catch the signs early. Look at prices near major resistance. Focus on candle size, gaps, and slowing momentum. It is worth noting that many traders also watch RSI or volume for stronger confirmation.

How to Confirm Evening Star Reversals?

Even if you spot the shape correctly, it won’t give you the full signal. You must confirm that the shift from bullish to bearish sentiment is strong enough to act on. That means you need to check for momentum, volume, and surrounding price conditions.

Look for Volume Shift

According to The Trading Analyst, volume often tells the story behind the candles. You need to see:

• High volume on the first green candle (bulls in control),
• Lower volume on the second candle (market hesitates),
• Rising volume on the third red candle (bears take over).

Because that volume pattern signals strength behind the shift. The pattern might fail without it.

Wait for a Confirming Close

The Trading Analyst also explains that traders often wait for a fourth candle — one that closes below the third candle’s low. That break confirms real bearish pressure. It filters out false signals where the Evening Star forms but buyers step back in the next session.

Use RSI or MACD for Momentum Check

Momentum indicators give further confirmation. When RSI drops below 70 after the Evening Star, that marks a reversal from overbought levels. MACD crossover to the downside adds more confidence. The Trading Analyst points to both as useful secondary checks.

Watch for Support Break or MA Close

Strong patterns break structure. If the Evening Star appears near a resistance and price closes below a key moving average (like 20 or 50 EMA), it confirms loss of bullish control. A support level break after the pattern strengthens your trade setup.

As The Trading Analyst notes, confirmation becomes more valid when combined — not just one factor alone. Volume, indicator signals, and price structure all need to agree.

Build a Checklist Before Entering

Use this quick filter before you act:

• Is the Evening Star forming after an uptrend?
• Did volume rise on the red candle?
• Did RSI shift from overbought?
• Did price close below a key moving average or support zone?
• Did the next candle break the low of the third?

If you tick most of the boxes, then you’ll know that the evening star signal is stronger.

Strong vs. Weak Evening Star Candlestick Pattern

Not all Evening Star patterns carry the same weight. Some offer decisive reversals, while others hint at possible shifts that need confirmation. If you properly classify the pattern as Strong or Weak, then you can set better expectations.

Strong Evening Star

A Strong Evening Star shows firm rejection of bullish pressure. It follows a clean uptrend and unfolds with:

• A long bullish candle showing aggressive buyers.
• A small-bodied second candle (Doji or Spinning Top), showing hesitation.
• A large bearish third candle closing well below the midpoint of the first candle—clear dominance by sellers.

It should be clear that this setup often appears near resistance zones or after a prolonged rally. Volume tends to rise on the third candle, confirming the bearish sentiment.

Weak Evening Star

A Weak Evening Star shows mixed signals and less commitment from sellers. It shares the same three-candle structure but shows weakness in:

• The third candle closes only slightly below the first candle’s midpoint.
• A second candle that may not reflect true indecision (e.g., too bullish or too strong).

Traders often treat this version as a warning, not a full signal. Additional indicators like RSI divergence or MACD crossovers help confirm its credibility.

Pro Tip: Strong Evening Stars near resistance zones offer higher-probability trades. Weak setups demand more confluence and tighter risk control.

How to Trade Evening Star Candle? 

First, wait for the full pattern of evening star to form. Do not react mid-way. Spot the long green candle after an uptrend. That confirms buyers had control.

Then, note the small second candle. Price loses direction. Market pauses.

Now comes the key signal. A big red candle must follow. It must close below the midpoint of the first candle.

Once that closes, prepare your entry.

• Entry: Place your sell order just below the red candle’s low. That gives confirmation and timing.
• Stop Loss: Keep it above the pattern’s high. Usually, that’s the top of the second candle.
• Take Profit: Aim for recent support zones. Also check past consolidation ranges. Use a risk-reward ratio of 1:2 or better.

Some traders zoom into smaller timeframes for a cleaner entry. Others confirm with indicators like RSI above 70 or bearish divergence.

You must stick to high-probability setups and make sure not to trade every star you see.

Evening Star vs Morning Star Candlestick 

Evening Star and Morning Star look similar on the chart, but their meaning flips completely. Both use a three-candle pattern. Both signal a reversal. But one shows weakness after a strong rally, and the other hints at recovery after a fall. 

So, let’s see how Evening Star differs from Morning Star so you can trade each better.

Evening Star: Signals a Top

You’ll find the Evening Star after a bullish run. The first candle pushes higher with strong buying. The second candle opens with a gap but fails to follow through — it stays small and flat. The third candle opens lower and sells off sharply. That shift from buyers to sellers shows loss of momentum.

Use Evening Star to prepare for short trades or to exit a long position. This pattern often forms near resistance zones or after extended bullish trends.

Morning Star: Signals a Bottom

The Morning Star works as the opposite setup. It forms after a downtrend. The first candle shows strong selling. The second candle gaps lower but closes with hesitation — often a Doji or spinning top. The third candle opens higher and rallies strong. Buyers reclaim control.

Morning Star setups create buying opportunities. Traders use it to catch early reversal signals after oversold markets or weak support breaks.

Evening Star vs Other Bearish Patterns

The Evening Star shares its bearish role with several other patterns, but each tells a different story on the chart. Some show sudden pressure, others unfold slowly over sessions.

So, let’s understand how the Evening Star stands apart—by structure, confirmation strength, and reversal clarity.

Evening Star vs Bearish Engulfing

Evening Star vs Shooting Star

Evening Star vs Dark Cloud Cover

Common Mistakes to Avoid While Trading Evening Star Candle Pattern

• Use the Evening Star only after a clear uptrend.
• Avoid trading without a bearish close below the third candle.
• Skip low-volume setups—they weaken the reversal signal.
• Don’t trade the pattern in sideways or flat markets.
• Stick to higher timeframes for cleaner signals.
• Always treat the middle candle as hesitation, not momentum.
• Keep stop-loss tight—just above the pattern’s high.
• Never rely on candle shape alone—check structure and confluence.
• Don’t expect instant reversals—allow time for follow-through.
• Pair the pattern with indicators like RSI, MACD, or trendlines.

Final Words

The Evening Star candlestick pattern works as a reliable signal when the market shifts from bullish control to bearish intent. It forms at the top of uptrends, using three distinct candles to mark the slowdown, hesitation, and final rejection of upward momentum. Traders who understand its structure and confirmation techniques can better prepare for reversals and time exits or short entries with more confidence.

Still, the pattern alone doesn’t guarantee results. Context matters. Volume, key resistance levels, and supporting indicators like RSI or MACD enhance the pattern’s strength. You need to view the Evening Star as part of a wider system—not as a standalone decision tool. Use it alongside trend filters, risk controls, and clear price action setups.