Evening Star
A three-candle bearish reversal: a long bullish candle, a small indecision candle gapping higher, then a large bearish candle reclaiming the midpoint.
The Evening Star is the bearish mirror of the Morning Star. Three candles:
- Candle 1: A long bullish candle extending the uptrend.
- Candle 2: A small-bodied candle (Doji or Spinning Top) that gaps up — the "star." Signals that the uptrend's momentum is stalling.
- Candle 3: A large bearish candle that closes well into Candle 1's body, confirming sellers took over.
Best traded at resistance levels, prior highs, or overbought readings. Volume expansion on Candle 3 is the strongest confirmation.