Short answer
What is an evening star pattern?
An evening star is a three-candle bearish reversal pattern after a rise: a long green candle, then a small-bodied candle (the star) that opens higher, then a long red candle that closes below the midpoint of the first candle's body. It shows buying fading and sellers taking control. In zone terms it is a compact Rally-Base-Drop, and its mirror image after a fall is the morning star.
Key takeaways
- Three candles after a rise: a long green candle, a small-bodied star, and a long red candle.
- The star opens above the first candle's close; in the classic definition its body gaps above the first body, but a small gap or none is common on Indian stock charts.
- The third candle must close below the midpoint of the first candle's body; a close below the first candle's open is stronger.
- When the star is a doji, the pattern is called an evening doji star.
- In zone terms it is a compact Rally-Base-Drop: a green leg in, the star as a one-candle base and a red leg out, with the star marking the supply zone.
- Most cash-market swing traders use it to exit or protect a long position; a short trade's stop goes above the star's high or the zone's distal line, whichever is higher.
What is an evening star pattern?
The evening star tells a three-part story at the top of a rise. The first long green candle shows buyers firmly in charge. The small star shows the buying losing force: price opens higher but the period ends with little change. The long red candle shows sellers taking over and erasing at least half of the first candle's gain. The name borrows from the planet Venus, the evening star that shines just before night falls.
- Candle 1: a long green candle that continues the rise.
- Candle 2, the star: a small-bodied candle that opens above candle 1's close. It can be green, red or a doji.
- Candle 3: a long red candle that closes below the midpoint of candle 1's body.
What is an evening doji star, and what other versions exist?
When the star is a doji, with open and close at almost the same price, the pattern is called an evening doji star. A doji shows buyers and sellers ending the period level at the high, so the stall before the sellers take over is even clearer. It is read the same way: the third candle must still close below the first candle's midpoint.
| Version | Star candle | What changes |
|---|---|---|
| Evening star | Small body, any colour | The standard version |
| Evening doji star | A doji | Open and close almost equal: the clearest stall at the high |
| Bearish abandoned baby | A doji that gaps above both neighbours, with no wick overlap | Rare on stock charts; the same reading with clean gaps on both sides of the star |
| Star with a long upper wick | Shaped like a shooting star | Two signs of rejected buying inside one pattern |
The star's colour matters little. A red star shows sellers already slightly ahead by its close, but the third candle is what completes the pattern. A star with a long upper wick, like a shooting star, shows buyers being pushed back from the high inside the star itself.
What is the difference between an evening star and a morning star?
The evening star is the mirror image of the morning star. One ends a rise and marks supply; the other ends a fall and marks demand. Every rule flips: the first candle changes colour, the star opens higher instead of lower, and the stop moves from below the star to above it.
A long red candle, a small-bodied star that opens lower, then a long green candle that closes above the midpoint of the first candle's body.
| Feature | Evening star | Morning star |
|---|---|---|
| Forms after | A rise | A fall |
| Candle 1 | Long green | Long red |
| Candle 2 (star) | Small body, opens higher | Small body, opens lower |
| Candle 3 | Long red, closes below candle 1's midpoint | Long green, closes above candle 1's midpoint |
| Zone pattern | Rally-Base-Drop | Drop-Base-Rally |
| Zone it marks | Supply zone | Demand zone |
| Proximal line | Bottom of the star's body | Top of the star's body |
| Distal line | The star's high | The star's low |
| Stop loss | Above the star's high | Below the star's low |
| Common cash-market use | Exit or protect a long position | Plan a long entry |
Why is an evening star a compact Rally-Base-Drop?
Sort the three candles with the 50% rule. The long green candle has a body of more than half its range, so it is an exciting candle: the leg in. The star's wicks make up more than half of its range, so it is a base candle: a one-candle base. The long red candle is another exciting candle: the leg out. Green leg in, one-candle base, red leg out is a Rally-Base-Drop in its most compact form, and the star marks a supply zone.
An evening star that forms inside an older fresh supply zone, especially one on a higher timeframe, is the stronger setup, because two layers of selling point the same way. The same three candles in the middle of a range, far from any zone, have much less behind them.
How do you trade or exit on an evening star?
Most cash-market swing traders use an evening star at a supply zone to manage a long position: book part of the profit, exit, or move the stop up. Shorting in the cash market is intraday only, so traders who want to hold a short position overnight use futures or options.
- Check the rise and the location at a fresh supply zone.
- Let the third candle close below the first candle's midpoint; that close is the pattern's built-in confirmation.
- For a long position: exit, book part of the profit, or tighten the stop.
- For a short trade: enter below the third candle's low, or on a pullback towards the star.
- Place the stop above the star's high or the zone's distal line, whichever is higher, and check that a 1:2 target fits before the next demand zone.
What are common mistakes with the evening star?
- Accepting a weak third candle: a red candle that closes above the first candle's midpoint has not reversed enough.
- Ignoring the rise: without an advance before it, the three candles are not a reversal.
- Placing the stop above the third candle instead of the star: the star's high is the pattern's real invalidation level.
- Forgetting the stop distance: three candles make a wide pattern; size the trade from the actual risk, or use a pullback entry.
- Holding a cash-market short overnight: cash-market shorts must be squared off the same day.
Frequently asked questions
Is an evening star bullish or bearish?
Bearish. After a rise, it shows buying stalling in the star and sellers taking control in the third candle. It carries the most weight when the star forms inside a fresh supply zone and the third candle closes well below the first candle's midpoint.
What is an evening doji star?
An evening doji star is an evening star whose middle candle is a doji, with open and close at almost the same price. It shows buyers and sellers ending level at the high before sellers take over, and it is read the same way: the third candle must close below the first candle's midpoint.
What is the difference between an evening star and a morning star?
They are mirror images. The evening star forms after a rise with a long green candle, a small star and a long red candle, and it marks a supply zone. The morning star forms after a fall with a long red candle, a small star and a long green candle, and it marks a demand zone.
Does an evening star need a gap?
In the classic definition, the star's body gaps above the first candle's body. On Indian stock charts a small gap or none is common, so many traders accept a star that simply opens above the first candle's close. The third candle closing below the first candle's midpoint matters more than the gap.
Where is the stop loss for an evening star trade?
For a short trade, just above the star's high, or above the supply zone's distal line if that is higher. The star's high is the point buyers could not get past; if price trades above it again, the pattern has failed.
Can I short a stock on an evening star in the cash market?
Only intraday. In the Indian cash market, short positions must be squared off the same day, so traders who want to hold a short for days use stock futures or options. Most cash-market swing traders use an evening star at a supply zone to exit or protect a long position instead.
Put this into practice
Work out the numbers before the market moves, then let an alert bring you back to your own plan.
Educational content only. Nothing here is investment advice or a recommendation to buy or sell any security. Chart diagrams use illustrative prices, not market data. Trading involves risk of loss; verify prices independently and apply your own risk process.