What it looks like
Candle one is a long up candle in a rise. Candle two is a doji (open and close at almost the same price) sitting above candle one's close. Candle three is a down candle that closes below the midpoint of candle one's body. The pattern's high is usually the doji's high.
What it means
The doji shows buyers could not extend the rise at all. The third candle then shows sellers taking back more than half of the first candle. Buyers had been in control and this is where they were stopped. It is a sign the rise is tiring, not proof that it has turned.
How to trade it
- 1
Look for it after a rise, ideally at a ceiling or a level that already mattered.
- 2
Wait for the next candle to close below the pattern's low, then sell.
- 3
Example: on the US30 1 hour chart an evening doji star spans 120 points; the sell is the next close below its low.
- 4
Stop just above the pattern's high, about 120 to 125 points in that example.
- 5
Target the nearest swing low or 2 times the stop.
A close above the pattern's high.
Where it works best
At the end of a clear rise into a ceiling, on 15 minute and higher charts. A doji right at a previous day or week high adds weight.
WickSpeak finds the evening doji star automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, in plain English. In Playbook you can use the evening doji star, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your own costs.
Common mistakes
- Selling the doji itself before the pattern is complete and confirmed.
- Calling a small bodied candle a doji when it is not.
- Selling it in a strong rise with no ceiling nearby.
Related patterns
Questions traders ask
Is the evening doji star bearish?
Yes. It appears after a rise and shows buyers stalling then being pushed back. Wait for a close below the pattern's low before selling.
What proves an evening doji star wrong?
A close above the pattern's high. Buyers have then pushed past the doji and the warning has failed.
Is a single doji enough to sell?
No. A doji alone only shows a stall. The evening doji star needs the down candle after it, and then a close below the pattern's low.
Where does the evening doji star work best?
At a ceiling after a clear rise, on 15 minute and higher charts.