candles · TRADING LEARNING GUIDE
Bearish candle
What is this concept?
A bearish candle closes below its open: C<O. The body's upper endpoint is open, lower endpoint close. Display colour does not change this definition.
Step by step
Calculate body and wicks from completed OHLC. Compare previous bars and nearby zones; a down bar can occur in a trend or range.
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
O110 C101 H112 L99 gives body 9, two wicks of 2 and range 13. Its body can remain within a previous bullish O100 C110 body; red alone does not mean engulfing.
Common mistakes and limits
Avoid treating every red bar as a sell, inferring seller identity from volume or assuming a developing close is final.
Practice
Place the same bearish bar in an uptrend, pullback and range. Write a distinct hypothesis for each context.
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.