Section 3 · Chart Reading
Green vs Red Candles
Color tells you who won — size tells you by how much.
Green means buyers won that period. Red means sellers won.
Size and wick ratio reveal conviction, not just color. A small green candle with a long upper wick is actually bearish. Context is everything.
3 things to know
🟢
Large green candle closing near the high = strong buyer conviction.
🔴
Large red candle closing near the low = strong seller conviction.
🕯️
Long upper wick on any candle = buyers tried to push higher but failed — bearish signal.
Dive Deeper
Buyer Control
Seller Control
Large green body
Large red body
Closes near the high
Closes near the low
Short or no upper wick
Short or no lower wick
Volume increasing
Volume increasing on sell-off
Marubozu (no wicks)
Bearish Marubozu (no wicks)
Key vocabulary — tap each card
Practice
True or false?
Statement 1 of 4
A green candle always means a stock is going up.
Did you know?
In Japan — where candlesticks were invented — white/hollow = bullish, black/filled = bearish. Some older platforms still use this convention. Do not get caught off guard when reading historical charts.