Forex glossary
Evening Star
Evening Star is a structure after an advance: a long bullish candle, a small body in star position and a bearish candle closing below the midpoint of the first body. The classic version uses a body gap; gapless variants on continuous FX markets require separate rules.
Illustrative example
How does it work in practice?
Assume the first candle runs from 100 to 110, the second has a small 111–112 body, and the third closes at 104. That close is below the first body's midpoint of 105.
A case to work through
A shallow third candle
Hypothetically, after a rise the first body spans 40–50, the second 51–51.5 and the third closes at 46.
- The first body's midpoint is 45.
- Close=46 remains above it and fails the stated close-below-45 condition.
What follows? Do not mark a complete Evening Star under this rule.
Example boundary: Libraries can parameterize penetration; use one explicit definition in analysis and testing.
A useful distinction
Evening Star / Morning Star
Evening Star concerns weakening after a rise; Morning Star reverses the structure after a decline.
Check your understanding
Check the first-body midpoint and recognize an unmet condition.
Show the answer and explanation
65
The midpoint is 66 and 65 is lower.
Bodies, shadows and context
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Read the fuller explanation
Related terms
Sources and documentation
- TA-Lib – ta_CDLEVENINGSTAR
Original OHLC body/shadow detection code and configurable candle thresholds; implementation is not effectiveness evidence.
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