Evening star
An evening star is a three-candle bearish reversal that needs a rise in front of it. A long up candle, a small indecisive candle, then a down candle closing below the first candle's midpoint.
In depth
The middle candle is the pause. Buyers push hard, then stall, then sellers take the next candle back through the first body. Say the first candle runs from 100 to 103, the second hovers near 103, and the third closes at 101.20, under the 101.50 midpoint. That is the shape.
Context is the test. Three candles like this in the middle of a fall mean nothing, because there was no advance to reverse. The level the shape leaves behind is the highest high of the three, and that is where the line goes, not the close and not the body.
Why it matters
The false positives cost more than the misses. Draw a line off every three-candle shape and your chart fills with prices nothing ever tested. Keep the count tight: three resistances above and three supports below, across all your timeframes together. That cap forces you to pick the ones that matter.
Tag the trades you took on this pattern and the By tag table shows the win rate, average winner and average loser for that tag beside your others. Trade replay puts your fills back on a TradingView chart so you can check the shape you actually traded.
Frequently asked questions
A three-candle bearish reversal after a rise: long up candle, small pause candle, then a close below the first body's midpoint.
Yes, and often it is. The middle candle records indecision, and its colour does not matter either way.
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