#美SEC促进加密资产创新监管框架 Let’s talk about the classic top signal, the "Evening Star"—perfect for avoiding FOMO buying at the top.
What does it look like? You can recognize it with just three candlesticks:
First: A big bullish candlestick, representing the last frenzy of the bulls during a strong uptrend. Second: A small, low-volume candlestick (can be bullish, bearish, or a doji), showing a tug-of-war between bulls and bears—this is when you need to be cautious. Third: A big bearish candlestick that wipes out the gains of the first candle, confirming the reversal.
How do you use it? Remember these three points:
First, check the position—it’s only effective at the end of an uptrend; if it appears during a downtrend, just ignore it. Second, check the volume—the first and third candles should have high volume, the middle one should have low volume; that’s the standard setup. Finally, look at indicators—RSI soaring above 70 and the 5-day moving average starting to turn down. When the pattern and indicators line up, the sell signal is pretty clear.
$BTC $ETH For mainstream coins, the Evening Star on the daily chart is especially powerful. When you see it, it’s time to exit—don’t try to tough it out.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
18 Likes
Reward
18
7
Repost
Share
Comment
0/400
SchrodingerAirdrop
· 12-07 16:15
The Evening Star pattern is indeed brutal. Last time, I failed to recognize it and ended up being stuck for two weeks. Now, just looking at the chart makes me nervous.
View OriginalReply0
BearWhisperGod
· 12-07 08:04
The Evening Star theory sounds great, but how many people can actually use it to sell at the top in practice? Most still end up stuck at the peak, singing songs.
View OriginalReply0
JustHereForAirdrops
· 12-04 17:40
Evening Star put it well, but I see that most people still have to suffer losses to learn. Anyway, I only believed it after going through it myself.
View OriginalReply0
OnChainSleuth
· 12-04 17:39
The concept of the Evening Star is often discussed, but it really does work time and again. The key is to look for volume resonance—when the RSI spikes, that's truly a golden window for selling at the top.
View OriginalReply0
AirdropHarvester
· 12-04 17:39
The Evening Star pattern logic is indeed effective, but discipline is still key... Every time I see the RSI spike to 70, I want to exit, but halfway through I can't hold on and end up chasing again, haha.
View OriginalReply0
ser_we_are_ngmi
· 12-04 17:35
I've heard about the Evening Star theory countless times, but the key is whether it's actually applied at critical points. Most people just analyze it in hindsight...
View OriginalReply0
PumpDoctrine
· 12-04 17:11
Evening star? I used this a lot when farming for profits, but I was always worried about making a wrong judgment and getting stuck.
#美SEC促进加密资产创新监管框架 Let’s talk about the classic top signal, the "Evening Star"—perfect for avoiding FOMO buying at the top.
What does it look like? You can recognize it with just three candlesticks:
First: A big bullish candlestick, representing the last frenzy of the bulls during a strong uptrend.
Second: A small, low-volume candlestick (can be bullish, bearish, or a doji), showing a tug-of-war between bulls and bears—this is when you need to be cautious.
Third: A big bearish candlestick that wipes out the gains of the first candle, confirming the reversal.
How do you use it? Remember these three points:
First, check the position—it’s only effective at the end of an uptrend; if it appears during a downtrend, just ignore it.
Second, check the volume—the first and third candles should have high volume, the middle one should have low volume; that’s the standard setup.
Finally, look at indicators—RSI soaring above 70 and the 5-day moving average starting to turn down. When the pattern and indicators line up, the sell signal is pretty clear.
$BTC $ETH For mainstream coins, the Evening Star on the daily chart is especially powerful. When you see it, it’s time to exit—don’t try to tough it out.