The morning star and evening star are three-candle reversal patterns. They tell a clear story of momentum shifting — and because they take three candles to form, they're a bit more reliable than single-candle signals.
The morning star (bullish)
Forms at the bottom of a downtrend, in three candles:
- A large down candle — sellers in control.
- A small-bodied candle (a doji or spinning top) — indecision; selling stalls.
- A large up candle that pushes well into the first candle's body — buyers take over.
Like the sun rising after night, it suggests a bottom may be forming.
The evening star (bearish)
The mirror image at the top of an uptrend:
- A large up candle.
- A small indecision candle.
- A large down candle that cuts into the first — sellers take control.
A warning that the rally may be ending.
What makes them valid
- Location — a morning star at support after a downtrend, an evening star at resistance after a rally.
- The middle candle matters — the smaller and more indecisive, the cleaner the shift.
How to trade them
- Confirm with the move that follows; many traders enter on the close of the third candle or the next one.
- Stop beyond the pattern's extreme.
- Combine with trend and volume.
Three candles, one story: control changing hands. The pattern is the setup; confirmation is the trigger.
Education only — not financial advice.