Any candle that closes below its open, usually drawn red or filled.
Sellers finished the period ahead. As with its opposite, the colour by itself carries almost no information; location and relative size carry all of it.
A red candle with a long lower-shadow at support after a decline is a different message from a red candle with no lower shadow breaking through that support on triple average volume.
Watch for the common beginner error of treating a single red candle as a reversal of a strong uptrend. In a healthy trend, red candles that hold above the prior swing-low are simply the pullback that lets new buyers in.
Original diagrams for the ideas on this page. Illustrative, not real market data.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.Support, resistance and the flip. Support is a price where buyers keep stepping in and the fall stops; resistance is a price where sellers keep stepping in and the rise stops. Once price closes above an old ceiling, that same level often acts as the new floor.
Educational only, not advice. Spotted an error? Post in Site Feedback.