Evening Doji Star Pattern on a Live Gold Chart

What it shows

Each one gets a red label marked EDS over the high of the third candle.

How Pravex works it out

1. The evening doji star rule never uses a fixed size: a body, open to close, is long when it beats the 14-candle exponential average of bodies and small when it falls short of it.
2. The evening doji star starts with a rising candle (close above open) whose body is long, above the average.
3. The middle candle must be a doji. The evening doji star rule calls a candle a doji when its body is no more than 5% of its high-to-low range. The bottom of its body must be above the first candle’s close.
4. The third candle must be falling and close at or below the middle of the first body, (open + close) ÷ 2.
5. Before the evening doji star counts, the first of the three candles has to show an uptrend, which by default means a close above the 50-candle simple moving average.

Settings

Setting	Default	What changing it does
Trend check	SMA50	Decides what counts as an uptrend before the evening doji star. By default one close is read against the 50-candle average; adding the 200-candle average asks for a longer trend before the evening doji star, and switching the check off ignores the trend completely.
Label colour	Red (#F23645)	The fill of the EDS label over the high of each candle where the evening doji star pattern is complete; its white text needs a colour it reads well on.

How traders read it

A strong rising candle, then a doji above it that shows the buying stopped dead, then a falling candle that takes back at least half of the first one. The complete stall in the middle is why it is read as a little stronger than a plain evening star.

The doji’s high is the usual stop. A third candle that closes under the first candle’s open is the strongest form, since the whole rise of the first candle is gone.

When it misleads

The doji has to open and close above the first candle’s close. Spot gold usually opens each candle at about the last close, so the gap is small or missing and labels are rare. In a strong uptrend, an evening doji star can still be a short pause. For the evening doji star, one close above the 50-candle average counts as an uptrend. A evening doji star label on the newest candle is provisional: that candle has not closed, and the shape may stop holding before it does.

Questions and answers

What is an evening doji star?

Three candles after a rise: a long rising candle, a doji whose body is above it, and a falling candle that closes at or below the middle of the first body.

How is it different from an evening star?

The middle candle is a doji, with a body of 5% of its range or less. In an evening star the middle candle has a small real body.

How is it different from a bearish abandoned baby?

An abandoned baby needs the doji’s whole range to gap above the first candle and below the third, and a long third candle. Here only the bodies of the first two must gap.

Related: Evening Star - Bearish, Morning Doji Star - Bullish, Abandoned Baby - Bearish, Tri-Star - Bearish, every indicator.