What green and red candles mean

The Close Defines Market Control

Every candle represents a timed auction between buyers and sellers. The open is where trading began; the close is where it settled. A green close proves buyers overpowered sellers and pushed prices higher. A red close proves sellers dominated. Where price closes relative to the extremes reveals who holds momentum into the next candle.

Remember: Closing near the high shows dominant buyers; closing near the low shows dominant sellers.

More in Candlestick basics

• Candlestick wicks explained
• Candle body size explained
• Trends vs consolidation on a chart