Evening Star
BearishReversalIntermediateA big green candle, a tiny star at the top, then sellers slam it back.
Verdict: UseBitcoin 4H: 0 trades, won —, avg trade — vs random day — (too few trades to judge). Backtest
Price keeps climbing. Every dip gets bought.
step 1/8
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After a rally: a big green candle, a small-bodied star at or above its close (the highest point of the three), then a red candle closing below the green body's midpoint. Then a candle CLOSES below the pattern's low within 3 candles. |
| Cancelled if | Price trades above the star's high before that close. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Shorting the third candle before price closes below the pattern's low.
- Calling any small candle a star: it has to sit at the top, above the green candle's body.
- Taking it in a sideways range: it needs a real rally to reverse.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 0 | — | — | — |
| US large caps (50) · 1D · 2016-2026 | 43 | 54% | +0.63% | −0.75% |
Verdict: UseMade money and beat a random entry on US large caps. Bitcoin had too few signals to judge.
pattern +27%random −32%