The Evening Star candlestick pattern signals a potential bearish reversal, helping commodity traders spot weakening uptrends before prices turn lower.
The Evening Star pattern is viewed as a bearish reversal pattern in technical analysis. It usually occurs at the top of an uptrend.
This guide explains what the Evening Star pattern is and how to recognize and interpret it with the help of an example chart and trade.
How to Identify an Evening Star
The Evening Star pattern consists of three candlesticks:
- Large bullish candle (Day 1)
- Small bullish or bearish candle (Day 2)
- Large bearish candle (Day 3)
Day 1
The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are in charge – new highs are usually made.
Day 2
The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher.
The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).
Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal.
Day 3
The most significant candlestick occurs on Day 3. It begins with a gap down (a bearish signal) and bears are able to press prices even further downward, often eliminating the gains seen on Day 1.
Evening Star Example Trade
The chart below of Exxon-Mobil (XOM) stock shows an example of an Evening Star bearish reversal pattern that occurred at the end of an uptrend.
- Day 1 of the Evening Star pattern for Exxon-Mobil (XOM) stock above was a strong bullish candle. In fact, it was so strong that the close was the same as the high (very bullish sign).
- Day 2 continued Day 1’s bullish sentiment by gapping up. However, Day 2 was a Doji, which is a candlestick signifying indecision. Bulls were unable to continue the large rally of the previous day. They were only able to close slightly higher than the open.
- Day 3 began with a bearish gap down. In fact, bears took hold of Exxon-Mobil stock the entire day. The open was the same as the high and the close was the same as the low (a sign of very bearish sentiment).
Also, Day 3 powerfully broke below the upward trendline that had served as support for XOM for the previous week. Both the trendline break and the classic Evening Star pattern gave traders a potential signal to sell short Exxon-Mobil stock.
Please note, this is an example – not a recommendation.
Where to Trade Using Technical Analysis
Further Reading on Reversal Patterns
These reversal tools complement Evening Star: Bearish Engulfing Pattern, Dragonfly Doji, and Inverted Hammer.
Technical analysis is most widely used in CFD and forex trading. If you’re ready to apply these techniques, browse our vetted CFD brokers or forex brokers.
Update history
This page was revised 7 times between August 2020 and April 2026.
Added recommended broker resources and a curated list of top CFD brokers to the Further Reading section.
Streamlined Further Reading section by removing outdated broker reviews and trading guides, replacing them with a focused list of complementary reversal patterns.
Refined heading to broaden scope beyond commodities and expanded closing sentence to clarify broker comparison criteria.
Simplified heading and clarified that broker reviews showcase their technical analysis tools.
Restructured content with clearer section headings, removed redundant text, improved grammar and capitalization consistency, and reorganized broker information under a new "Where to Trade" section.
Added content alert call-to-action component to the How to Get Started Trading section.
Reorganized content by moving pattern explanation and chart example higher in the article, added detailed breakdown of each day's candlestick behavior, and introduced new "How to Get Started Trading" section with broker resources.
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