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📊 Price Action·intermediate

Evening Star

A three-candle bearish reversal pattern that signals the top of an uptrend — small body in the middle, big bearish candle to confirm.

An evening star is the bearish mirror of the morning star. Candle 1: a strong bullish candle (the uptrend in progress). Candle 2: a small-bodied candle (often a doji or spinning top) near the high — buyers losing momentum. Candle 3: a strong bearish candle that closes well into the body of the first candle, confirming the reversal. The psychology mirrors the morning star but inverted. Buyers were in control, then stalled, then handed control to sellers with a decisive third candle. The pattern is most reliable at major resistance or after extended rallies. The entry is on the close of the third candle or on the next candle's open. The stop sits above the high of the entire pattern. Targets typically reach the next significant support level.
Real trade example

USD/JPY printed an evening star on the daily chart at 151.95 in November 2022 — strong rally, doji, deep red engulfing candle. The reversal kicked off a 1,800-pip drop to 130 over the next four months.

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