The evening star is the mirror of the morning star — a three-candle top. Long green candle, then a small-bodied indecision candle that often gaps up, then a long red candle that cuts deep into the first candle's body. Buyers exhausted, sellers took control.
Three sessions tell the story. Buyers are in control on candle 1 — full conviction, no sellers in sight. Candle 2 is the pause: the rally tries to extend, but momentum stalls. Candle 3 is the reversal — sellers step in and reclaim ground, often violently.
The pattern works because it's structurally rich. A single bearish candle at the top of a rally could be profit-taking. Two could be a pullback. Three candles in this exact sequence — extension, exhaustion, capitulation — is hard to read as anything other than a meaningful change of character.
The deeper candle 3 cuts into candle 1's body, the stronger the signal. A full retrace is the canonical version.
Thesis fires the evening star detector on every 1-hour close. When it triggers, the candidate runs through a deterministic pre-filter (trend, RSI, fee-coverage math) and then through an AI reasoning pass with the full context — recent price action, indicator snapshot, support/resistance, live news sentiment, market regime — before any short order gets placed.
Bearish setups in equity require the market to be open, and short positions carry different risk than longs. Thesis's risk layer adapts position sizing for direction. See how the AI layer works or how it's tuned for small accounts.
Free practice mode lets you see live evening-star detections before connecting a broker.
Create free account →