Lesson 28 of 53
Bullish vs bearish candles
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Colour is a shortcut for one single fact: whether the close finished above or below the open. Green (or white) means the close was higher — a bullish candle. Red (or black) means the close was lower — a bearish 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 wicks is far weaker than a small red candle with a full body.
Read the shape, not the colour
Two candles can both be green and mean opposite things. Always read body size, wick length and position within the recent trend 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 uptrend, at fresh support, or in the middle of a sideways range gives three different messages. Locate the trend first, then read the candle.
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