A bullish candlestick indicates that the price of an asset has risen during a trading session, showing buyer dominance & market optimism, helping to identify potential upward trends.
A bearish candlestick shows a decrease in asset price during a trading session, indicating seller dominance and market pessimism, helping traders spot potential downward trends.
Bullish candlesticks reflect optimism, indicating potential upward price movements, whereas bearish candlesticks reflect pessimism, suggesting downward trends.
Market Sentiment:
A bullish candlestick has a closing price consistently higher than the opening price, confirming buyer strength, while a bearish candlestick closes lower than the opening price.
Price Movement:
Bullish candlesticks are represented by green or white, signalling bullish trends, whereas bearish candlesticks are red or black, visually indicating bearish trends.
Colour:
A bullish candlestick indicates buying opportunities or continuation of an upward trend, while a bearish candlestick suggests selling opportunities or potential downward trend.
Signal:
Bullish patterns include Hammer, Bullish Engulfing, Morning Star, & Piercing Line, whereas bearish patterns include Shooting Star, Bearish Engulfing, Evening Star & Dark Cloud Cover.
Common Patterns:
A long body in a bullish candlestick signifies strong buying pressure and confidence in price increase, whereas a long body in a bearish candlestick indicates strong selling pressure.
Body Size:
The fundamental advantage of bullish and bearish candlestick patterns is their ability to offer visual cues for trend prediction, quick insights, and risk management.
The disadvantages of bullish and bearish candlestick patterns lie in their susceptibility to false signals, limited context & subjectivity, risking inaccurate decisions & poor trades.