Bullish and Bearish Candles
A bullish candle closes above its open and a bearish candle closes below it; colours vary by platform, so always check the chart's settings.
A bullish candle closes above its open; a bearish candle closes below it. Many platforms colour bullish candles green or white and bearish ones red or black, but this varies, and some charts use hollow and filled bodies instead. Always check your chart's settings before reading colour.
- Category
- Technical Analysis
- Reading time
- 3 min
- Also called
- Up and down candles, Green and red candles, Hollow and filled candles
- Updated
Candle direction in plain words
A hollow (or green) candle closed above its open, which signals buying pressure.1
A filled (or red) candle closed below its open, which signals selling pressure.1
Colour schemes vary by platform, but a dark or red body usually means the period closed lower than it opened.2
How to tell bullish from bearish
Check the settings
Learn which colour or fill your platform uses.
Find the open and close
Look at the body: it spans the open and the close.3
Compare them
Close above open is bullish; below is bearish.
Note the body size
Compare body lengths — a longer body shows stronger buying or selling.1
Look at the wicks
Wicks show the high/low range.
Read in context
One candle is one period, not a trend.
Worked examples
Example 1 — Bullish
BullishA hypothetical candle opens at 20 and closes at 23.
| Open | 20 |
| Close | 23 |
The light-coloured body tells you the period finished above where it started.2
Example 2 — Bearish
BearishA hypothetical candle opens at 40 and closes at 37.
| Open | 40 |
| Close | 37 |
The filled body shows sellers were in control: the close was below the open.1
Example 3 — Colour swap
Check settingsA hypothetical platform uses blue for up and orange for down.
| Up | Blue |
| Down | Orange |
Colour only tells you which way price moved during the period — and only once you know the platform's scheme.3
Bullish vs bearish candle
| Aspect | Bullish | Bearish |
|---|---|---|
| Close vs open | Above | Below |
| Common colour | Green or white | Red or black |
| Fill (classic) | Hollow | Filled |
| Shows | Buying pressure | Selling pressure |
Where traders use it
Reading candles
The base of every Candlestick pattern.
Trend
Spotting runs within a Trend.
Momentum
Gauging Momentum from body size.
Reversals
Part of Reversal patterns.
Advantages and disadvantages
Advantages
- Instant read of direction.
- Body size shows strength.
- Works on any timeframe.
Disadvantages
- Colours differ by platform.
- One candle says little alone.
- Timeframe changes the picture.
- Can tempt overtrading.
Going deeper
Read as far as you need. Each level builds on the one before it.
Common mistakes
Assuming green always means up
Check settings.
Trading one candle
Wait for context.
Ignoring wicks
They show the range.
Mixing timeframes
Compare like with like.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Bullish closes above the open.
- Bearish closes below the open.
- Colours vary by platform.
- Longer bodies show stronger pressure.
- Read candles in context.
Frequently asked questions
Is a green candle always bullish?
Can a bullish candle close lower than yesterday?
Do doji count?
Further learning
- Candlestick
Candle basics.
- Trend
Direction over time.
- Reversal
When direction changes.
- Timeframe
What one candle covers.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Introduction to Candlesticks (opens in a new tab) Checked .
- CMC Markets. Candlestick Patterns Explained: A Beginners Guide (opens in a new tab) Checked .
- IG. Japanese Candlesticks: What They Are + How to Trade (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Candlestick Patterns (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.