SocialForex
Intermediate

Evening Doji Star – Advanced Bearish Reversal Strategy

Learn the Evening Doji Star, a powerful bearish reversal pattern. Master how to identify it, trade it effectively, and avoid common mistakes.

Mark · Trader & Founder, Social Forex

Evening Doji Star – Advanced Bearish Reversal Strategy

Definition

The Evening Doji Star is a bearish reversal variant of the Evening Star pattern, made of three candles appearing at the top of an uptrend. The key feature is the second candle: a Doji with a very small body, where open and close are nearly identical. When a Doji appears after a strong bullish candle, it signals that buyers are losing momentum and the market is hesitating, often leading to a reversal.

How to Identify

To spot this pattern, check three conditions:

  • Candle 1: A large bullish candle with a long body, showing buyers are in control.
  • Candle 2: A Doji with a tiny body; open and close are almost equal. It usually gaps above or sits above candle 1's high.
  • Candle 3: A large bearish candle that closes deep into candle 1's body (at least 50% of the body), confirming sellers have taken control.

    • The general shape of the pattern looks like this:

    Resistance Zone50%C1StarC3 ↓

    The Doji can be a standard Doji, a Gravestone Doji, or a Long-legged Doji. A long upper shadow on the Doji makes the bearish signal stronger because it shows selling pressure at resistance:

    Open ≈ CloseUpper wickLower wickTiny body = buyers and sellers in perfect balance → indecision

    How to Trade

  • Context: Only trade this pattern at the top of a clear uptrend, ideally after a strong bullish move.
  • Entry: Wait for candle 3 to close, then go Sell at the open of the next candle or on a retest of the resistance zone near the Doji's high.
  • Stop loss: Place it above the Doji/second candle high, using a buffer of 1.5–2 times ATR to avoid being stopped out prematurely.
  • Take profit: Aim for a minimum Risk/Reward of 1:2. The nearest target is a support level or prior swing low; the extended target is the 61.8% Fibonacci retracement of the prior upwave.

    • Real Example

    Suppose EUR/USD is rising from 1.0800 to 1.1000. At 1.1000, a large bullish candle appears, followed by a Doji, then a strong bearish candle closes below 50% of the first bullish candle body. You sell at 1.0995, place a stop loss at 1.1020 (above the Doji high), and target 1.0900 — a reward/risk ratio of roughly 1:2. The price later drops as expected, showing the pattern works in practice.

    Common Mistakes

  • Trading the pattern in a downtrend or sideways market, although its purpose is to catch a top after an uptrend.
  • Ignoring candle 3 confirmation: without a strong bearish candle, the pattern is incomplete.
  • Placing the stop loss too close to the Doji high, which is easily hit before the real move down.
  • Forgetting to check volume: if candle 3 volume is not above average, the signal is less reliable.
  • Entering as soon as the Doji appears, without waiting for confirmation, which raises the losing rate.

    • Content is for reference only, not investment advice. Forex trading carries high risk.

    Save your learning progress

    Create an account to keep lessons, watchlist symbols, and journal notes connected as you practice.

    Save progress

    ← Lesson list

    Explore more

    Start hereAcademyResourcesWebinar