Bullish & Bearish Candle Sticks (Stock Market)

Understanding candle sticks will help a lot in your trading decisions. Let us begin with a bullish candle. It is usually presented as green or white candle. see below

A bullish candle simply means that buyers are winning over sellers. It also means that the closing price is higher than the opening price. The body of the candle represents the opening and closing price of a certain stock. Notice that most candle stick are not perfect, thus creating a lower & upper tail. The end tail shows the lowest price the stock went down for specific period. On the other hand, the upper tail shows the highest price the stock went up during a specific period.

A bearish candle is the exact opposite of bullish candle. In this kind of candle, the sellers are winning over the buyers. It means that closing price of a stock is lower than its opening price.

Sometimes, neither the buyers or sellers are winning. The market seems to be undecided. A doji candle is form in this kind of market behavior. Below are examples of doji candles.

Without considering other factors; a bullish candle can be a buy signal & bearish candle can be a sell signal. But in stock market, candle charting cannot be an independent tool. This is most effective if use together with other oscillators.

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