candles · TRADING LEARNING GUIDE
Bullish candle
What is this concept?
A bullish candle closes above its open: C>O. Colour is configurable. Its shape describes a past interval rather than guaranteeing the next candle's direction.
Step by step
Identify open and close, then calculate the body and wicks. Consider timeframe and previous context; keep confirmation and invalidation separate from shape.
From observation to decision
Record the instrument, venue, session and timeframe. Classify the observation using the definition, then write at least one alternative interpretation. Decide what evidence would invalidate your idea before entry. Mark missing information explicitly. Examples are hypothetical. Collect paper observations, including failures. Include fees, spread, slippage and timestamp alignment when measuring outcomes. Recognizing a chart shape and establishing a profitable trading rule are separate tasks.
Worked example
O100 C108 H111 L97 gives body 8, upper wick 3, lower wick 3 and range 14. A later price of 106 does not alter the completed candle's bullish classification.
Common mistakes and limits
Avoid automatic entries from green colour or treating the current developing close as final.
Practice
Draw three bullish shapes: small body, long upper wick and near-full body. Explain their different information despite matching colour.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.