Technical analysis · Unit 2 · Candlestick patterns · Chapter 10

Morning and evening star: A turn in three days, and price gaps

How the three-candle morning star and evening star patterns mark a turn, what gap ups and gap downs are, and why they happen on the NSE.

Morning and evening stars: a turn in three days

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The teaching chart from this chapter. The interactive chapter hides what happens next and asks you to call it.

A star pattern takes three candles: a big candle in the direction of the trend, then a small star that often gaps away from it, then a big candle the other way. It is the turn of the tide, drawn in slow motion.

What to look for

  • Morning star: after a fall. A big red day, a small star, then a big green day that closes above the middle of the red body.
  • Evening star: after a rise. A big green day, a small star, then a big red day that closes below the middle of the green body.
  • A gap is empty space between two candles: one day’s whole range sits above (gap up) or below (gap down) the day before.

Gaps happen because the NSE is shut overnight. Results, news or global markets can make a stock open far from yesterday’s close.

Check yourself

After a fall: a big red day, then a small candle that gapped lower, then a big green day closing above the middle of the red one. Which pattern is this?

  1. A morning star
  2. An evening star
  3. A bearish engulfing
Show the answer

A morning star. Sellers had a big day, stalled on the small star, then buyers took back more than half of the red day. That is a morning star. The name fits: the morning star shows up just before sunrise.

Key takeaway

First light after the fall

The stock had fallen from about ₹1,515 to ₹1,305. A big red day was followed by a small star that gapped lower, then a strong green day that gapped up and closed at ₹1,355, above the middle of the red candle. Buyers had taken charge, and price climbed over the next two weeks.

The third candle is the confirmation. Without it, the star is just a doji or spinning top still waiting for a meaning.

Practise Morning and evening star, free

Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.

Common questions

What is Morning and evening star?

A star pattern takes three candles: a big candle in the direction of the trend, then a small star that often gaps away from it, then a big candle the other way. It is the turn of the tide, drawn in slow motion.Morning starEvening star

What should I look for with Morning and evening star?

Morning star: after a fall. A big red day, a small star, then a big green day that closes above the middle of the red body. Evening star: after a rise. A big green day, a small star, then a big red day that closes below the middle of the green body. A gap is empty space between two candles: one day’s whole range sits above (gap up) or below (gap down) the day before.

How can I practise reading Morning and evening star for free?

MarketSeekho has a free four-page chapter on Morning and evening star (learn, answer a question, spot it on a chart, then make a call) and daily real-chart practice graded on your reasoning. No sign-up or money needed.