User Rating: 4 / 5

Star ActiveStar ActiveStar ActiveStar ActiveStar Inactive

Evening star pattern in Forex

Change video quality to 1080p HD

Evening starEvening star pattern is a three-candle formation comprising of the following candles:

  1. First is a white candle
  2. Second is a small spinning top who’s colour does not matter
  3. Last is a strong, black candle

The evening star pattern is the opposite of the morning star pattern and appears at the top of an up-trend. This pattern has the power to turn the current up-trend into the downwards direction. The rules for the evening star pattern are as follows:

  1. First candle has to be a white candle
  2. Second candle is a small spinning top with small shadows/wicks that opens and closes at or above the prior, white candle’s real body. The shadows/wicks can overlap and do not matter.
  3. Third candle is a black candle that opens at or below the second candle’s close and closes more than half way into the first, white candle’s real body.

Do not place a ‘sell’ every time you see the evening star pattern. This pattern appears regularly and more confirmation is needed if we were to consider taking a trade at this point.

The chart below shows how the up-trend is strong until the formation of the evening star pattern. After its competition, the market mood turned sour causing a fall in price levels. 

Evening star pattern chart

The appearance of the evening star pattern turns the trend downwards.

Live Forex Quotes

Subscribe to Capex Forex Trading Youtube channel

Forex News

Go to top