A three-candle top: a large bullish bar, a small indecisive bar, then a large bearish bar that closes deep into the first body. Buying momentum has stalled and reversed.
How to identify it
- Large bullish candle in an uptrend
- Small-bodied middle candle near the high
- Third candle bearish and closes past the midpoint of the first
Entry
Sell on the close of the third candle or below its low.
Stop loss
Above the high of the middle candle.
Target
The base of the first candle and the prior swing low.
Invalidation
A close above the middle candle high.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your evening star trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.