The opposite of the morning star candlestick pattern is the evening star.
Understanding the Opposite: The Evening Star
In the realm of financial market analysis using candlestick patterns, specific formations are identified to signal potential price reversals. Just as the morning star is a bullish pattern indicating a potential upward move, its direct opposite is a bearish pattern suggesting a potential downward move. This opposing pattern is known as the evening star.
Defining the Evening Star Pattern
The evening star is recognized by a sequence of three candles and typically appears at the peak of an uptrend. According to the reference provided, the specific characteristics of this pattern are clearly defined:
- It begins with a long white candle. This candle signifies strong buying momentum that has been driving the price up.
- This is followed by a short black or white candle. This second candle often shows a gap up from the first and represents indecision or a pause in the strong upward movement.
- The pattern concludes with a long black candle. This third candle signifies that selling pressure has taken over, driving the price significantly lower.
Key Criterion
A crucial aspect of the evening star pattern, as highlighted in the reference, is the performance of the third candle. For the pattern to be confirmed as an evening star, the final long black candle must close at a level that is at least half the length down the body of the initial long white candle from the first session.
This structure makes the evening star a reliable visual indicator for traders and analysts looking for signs of a potential trend reversal from bullish to bearish.
Evening Star Components Visualized
Below is a summary of the components that make up the evening star pattern:
| Candle | Description | Color | Relative Size | Position Relative to Previous Candle | Key Requirement (Candle 3) |
|---|---|---|---|---|---|
| 1 | Trend Continuation | White | Long Body | Start of Pattern | Forms part of the existing uptrend |
| 2 | Indecision / Slowing | Black/White | Short Body | Often Gaps Up | Shows momentum is stalling |
| 3 | Reversal Confirmation | Black | Long Body | Gaps Down or opens within Candle 2 | Closes at least halfway down the 1st candle |
This three-candle sequence paints a picture of the market transitioning from buyer dominance to seller dominance, marking the evening star as the bearish counterpart to the bullish morning star.
