The Evening Star is a three-candle bearish reversal at the top of an uptrend — the mirror of the Morning Star. Candle 1 is a large bullish candle. Candle 2 is a small-bodied candle that gaps up. Candle 3 is a large bearish candle closing at least halfway into Candle 1's body.

How to Identify

• Candle 1: Long bullish candle continuing the uptrend
• Candle 2: Small real body gapping above Candle 1 (doji or spinning top)
• Candle 3: Large bearish candle closing below the midpoint of Candle 1's body
• Volume typically rises on Candle 3 — the confirmation candle

Market Psychology

Three-act topping story: strong buying (Candle 1), then a gap-up showing enthusiasm followed by indecision (Candle 2 — bulls and bears are equally matched at the top), then a decisive bearish reversal (Candle 3 — sellers take control). The pattern traces the exact moment the trend loses conviction.