Morning Star & Evening Star
Three-candle reversals that mark exhaustion at the top or bottom.
Morning and evening stars are *three-candleA chart bar showing a period’s open, high, low and close.* reversal patterns that tell a small story of momentumBuying recent winners and avoiding recent losers. fading, pausing, then flipping. Reading them as a sequence is the key.
- Morning starA three-candle bullish reversal pattern. (bullish, after a downtrendThe prevailing direction of price: up, down or sideways.) — (1) a big red candleA chart bar showing a period’s open, high, low and close. (selling in full force), (2) a small-bodied candleA chart bar showing a period’s open, high, low and close. that gaps down (selling exhausts, indecision), (3) a big green candle pushing back up (buyers take over). Dawn after the dark.
- Evening starA three-candle bearish reversal pattern. (bearish, after an uptrendThe prevailing direction of price: up, down or sideways.) — the mirror: (1) a big green candleA chart bar showing a period’s open, high, low and close., (2) a small indecisive candleA chart bar showing a period’s open, high, low and close. gapping up, (3) a big red candle driving down. Dusk after the peak.
These patterns are powerful because they capture a transition, not a single moment: overwhelming pressure (candleA chart bar showing a period’s open, high, low and close. 1) → that pressure stalling into indecision (candleA chart bar showing a period’s open, high, low and close. 2, the “star”) → the opposite side seizing control (candle 3). You’re watching momentumBuying recent winners and avoiding recent losers. die and reverse across three acts — which is far more convincing than any one candle claiming a top or bottom.
ExampleA downtrendThe prevailing direction of price: up, down or sideways. prints a large red candleA chart bar showing a period’s open, high, low and close., then a tiny dojiA candle with almost no body — indecision.-like candleA chart bar showing a period’s open, high, low and close. (sellers spent), then a strong green candle that closes well into the first candle’s body. That’s a morning starA three-candle bullish reversal pattern. — the bottom may be in, and buyers have taken the wheel.
Key takeawayMorning starA three-candle bullish reversal pattern. (bullish bottom) and evening starA three-candle bearish reversal pattern. (bearish top) are three-candleA chart bar showing a period’s open, high, low and close. reversals: strong move → small indecisive “star” → strong opposite move. They show momentumBuying recent winners and avoiding recent losers. exhausting and flipping across three candles — more convincing than a single signal.
FAQs
Does the middle “star” candle need to gap?
Classically yes — the small middle candle gaps away from the first, emphasising exhaustion. In practice (especially in 24-hour or liquid markets where gaps are rare), a small-bodied middle candle without a clean gap is still widely accepted, as long as the three-act momentum story holds.