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Candlesticks

Bearish Candle

Also called: Red candle

// Definition

A bearish candle is a candle that closed lower than it opened, usually shown in red.

Bearish Candle explained on a labelled 3D candlestick chart
Candlestick Anatomy, shown on an illustrative 3D chart. Tap the image to zoom.

Explained simply

A bearish candle means sellers won that period: price ended below where it started.

A long red body with little wick shows heavy selling. A red candle with a long lower wick shows that sellers pushed price down but buyers stepped in before the close.

Tip

Read red candles with volume. A big red candle on high volume carries much more weight than one on thin volume.

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