Bullish and Bearish Candles Explained
Learn what makes a candle bullish or bearish, how color coding works, and why individual candles should be read in context.
- 7 min read
- For beginners
- Educational
- Leçon 4 sur 6
This lesson explains the distinction between bullish and bearish candles, and what this classification represents.
This is general educational content; color conventions can vary slightly by platform, so it's worth confirming your specific platform's settings.
What Makes a Candle Bullish?
A candle is generally classified as bullish when the closing price is higher than the opening price for that period, meaning price rose over the course of the period. Bullish candles are commonly color-coded green or white, though specific color schemes can vary by trading platform.
What Makes a Candle Bearish?
A candle is generally classified as bearish when the closing price is lower than the opening price for that period, meaning price fell over the course of the period. Bearish candles are commonly color-coded red or black, though again, this can vary by platform.
A Single Candle Reflects One Period, Not a Trend
It's important to understand that a single bullish or bearish candle only reflects price direction within that one specific period — it does not, by itself, indicate a broader trend (covered in the Market Guides module) or predict what will happen in subsequent periods. A bullish candle can occur within a broader downtrend, and vice versa.
Reading Candles in Context
Individual candle color is most useful when considered alongside broader context — such as recent trend direction, proximity to support or resistance zones (covered in the Market Guides module), and the sequence of preceding candles — rather than being interpreted in isolation. This context-dependent reading becomes especially relevant when exploring multi-candle patterns in the next lesson.
Summary
A candle is classified as bullish when close is higher than open (commonly green or white) and bearish when close is lower than open (commonly red or black), though color conventions can vary by platform. A single candle only reflects price direction within its own period, and is most meaningfully interpreted alongside broader trend and market context, rather than in isolation.
Frequently Asked Questions
The closing price is higher than the opening price for that period, generally shown in green or white.
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