Price Action EVENING STAR Pattern Trading Strategy [Signals, Formation, Trade Examples]

Price Action EVENING STAR Pattern trading strategy [Signals, Formation, Trade Examples] — Today we will look at another Price Action pattern, as well as a candlestick formation — EVENING STAR. This is the same pattern for the morning star, only it is at the top.

This is a fairly simple but strong signal for making a deal in any market: forex, cryptocurrency market, stock market. This tells us that the trend may change after it forms. And the price from an uptrend will change it to a downtrend.

What is EVENING STAR Pattern?

An evening star is also a pattern that usually forms at the moment of at least a temporary trend reversal in the financial markets, as well as at the end of corrective movements on the charts of any financial instruments. The model consists of 3 candles (see example below):


The main condition for the formation of the model is that the 2nd candle should have the most similar tails. The size of the candle does not matter. And it shouldn’t be an inside bar.

The deal is opened after the close of the 3rd candle of the pattern.

Stop and Profit:

1) Stop loss — above the high of the 2nd candle for sales (this is the best option).

2) Profit — there are options:

  • 1 to 2 or 1 to 3 relative to the stop loss.
  • At important levels (1st and 2nd profit).
  • We expose on Fibonacci from the last movement.
  • Other methods are channels, trend lines, Fibonacci extensions, etc.

That’s all I wanted to tell you about the EVENING STAR Pattern, then I attach examples of trading in the video:

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