Morning Star and Evening Star: Three-Candle Reversal Patterns
The Morning Star is a three-candle bullish reversal pattern that marks the end of a downtrend. Its bearish counterpart, the Evening Star, marks the end of an uptrend. Both are among the most reliable reversal patterns in candlestick analysis because they capture three distinct phases of a trend change.
The Morning Star gets its name from the planet Venus, which appears in the sky just before dawn — a signal that the darkness is ending. In market terms, the pattern appears at the bottom of a downtrend and signals that the selling is exhausted, indecision has arrived, and buyers are now taking control. The three candles together tell the complete story of a trend change.
Morning Star (left): bearish → star → bullish. Evening Star (right): bullish → star → bearish. The 50% rule applies to candle 3 closing into candle 1.
Breaking Down the Three Candles
Candle 1: The Dominant Force
The first candle is a large-bodied candle in the direction of the existing trend. In a Morning Star, it is bearish — confirming that sellers are still in control. In an Evening Star, it is bullish — confirming that buyers are still pushing. This candle sets the stage: the trend is real and strong.
Candle 2: The Star — The Turning Point
The middle candle is the most important. It has a small body — a Doji, Spinning Top, or any candle where the open and close are close together. Ideally, it gaps away from the first candle (above in a Morning Star setup, below in an Evening Star setup), creating a visual gap between the bodies. This candle represents indecision: neither side could dominate. The trend's momentum has momentarily stalled.
Candle 3: The Confirmation
The third candle is large-bodied and moves against the first candle. Critically, it must close at least 50% into the first candle's real body. This confirms that buyers (Morning Star) or sellers (Evening Star) have not just resisted the trend — they have actively reversed it. The deeper the penetration into candle 1, the stronger the signal.
Morning Star at a Major Low
After a 3-week decline, BankNifty forms: Day 1 — large red candle (open 44,800, close 44,100). Day 2 — Doji candle near 43,850 with tiny wicks (open 43,840, close 43,870). Day 3 — large green candle opens at 44,100, rallies strongly, closes at 44,600. The 50% midpoint of the Day 1 candle is (44,800+44,100)/2 = 44,450. Close of 44,600 is above that — valid Morning Star. Entry: 44,600 on close of Day 3. Stop: below Day 2 low (43,820). Target: 45,200.
Evening Star with a Doji Star = Extra Power
When the middle star candle is a Doji (not just a small body), the Evening Star becomes a 'Evening Doji Star' — and the indecision signal is amplified. The market reached a new high (gap up), then could not move at all for an entire session. The subsequent bearish candle confirms that all the bulls who were excited by the gap up are now trapped.
Key Takeaways
- Morning Star: large bearish candle → small-bodied star candle (gap lower) → large bullish candle. Bullish reversal.
- Evening Star: large bullish candle → small-bodied star candle (gap higher) → large bearish candle. Bearish reversal.
- The middle 'star' candle is the key — it represents the moment of maximum indecision at the turning point.
- The third candle must close at least halfway into the first candle's body to confirm the reversal.
- Morning/Evening Stars are more reliable than single-candle signals because they show three phases: trend, indecision, reversal.