Lesson 30 of 69
Bullish vs bearish candles
5 min read
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Colour is a shortcut for one single fact: whether the finished above or below the . Green (or white) means the close was higher — a . Red (or black) means the close was lower — a candle.
What colour does not tell you
- It does not tell you whether price is up or down for the day — only for that one period.
- It does not tell you how far price travelled: a green candle can close green after a violent drop and recovery.
- It does not tell you strength. A green candle with a tiny body and huge is far weaker than a small red candle with a full body.
Read the shape, not the colour
Two can both be green and mean opposite things. Always read body size, wick length and position within the recent together — colour is the last thing you should look at, not the first.
Context comes before the pattern
Every pattern in this module means something different depending on where it appears. The same shape after a long , at fresh , or in the middle of a range gives three different messages. Locate the trend first, then read the candle.
Key takeaways
- A bullish candle closes above its open; a bearish one closes below.
- Colour alone means little — context and location give a candle meaning.
- Runs of decisive candles show one side repeatedly winning.
- Read candles as a sequence, not one at a time.
Knowledge check
3 quick questions — your best score is saved to your progress.
1. A bullish candle is one where…
2. Why should a single candle rarely trigger a trade?
3. What does a run of large bearish candles usually indicate?
Progress is saved on this device.
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