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7.5What is a bearish candle?

1What is it?

A bearish candle (usually red) closes lower than it opened. Sellers won that period.

2Why does it exist?

A long red candle shows strong selling pressure.

3Diagram
₹97₹101₹106₹110₹114OpenClose
4Quick revision
  • Red = close < open.
  • Long red body = strong selling.
5Knowledge check
Q1. Open ₹200, close ₹190. Type?Show answer

Bearish.

Q2. Can a red candle close above yesterday’s close?Show answer

Yes, if it opened even higher (gap up) and fell during the day.

Q3. Usual colour?Show answer

Red (or black/filled).

More in Level 7: Technical Analysis: Understanding Stock Charts