Evening Star
Bearish reversal3 sessions
Buying, then hesitation, then selling. The morning star inverted, and just as demanding.
The shape: A real up body, a small body gapping away from it, then a down body closing back into the first
What it is
Session one advances decisively. Session two is small and detached — the advance has stopped without selling having started. Session three closes well back into the first body.
The middle session is again the pattern: the day the trend stopped working.
How to read it
The third bar has to do the work. Closing below the first body's midpoint is the minimum; below its open is stronger.
The middle bar's high is the level the sequence is built on. Above it, the pattern is void.
On the chart: a triangle below the bar for a bullish reading, above it for a bearish one, a diamond for indecision. Hover any mark to see the pattern and what qualified it — the level it formed at and the move it followed.
Using it on the wheel
Three-session tops complete late, which is the same trade-off the morning star carries in reverse: better evidence, and by then the move it describes is partly behind you.
For anyone holding shares into a covered-call decision, the useful part is the level — the high the market reached and then abandoned across three sessions.
Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.