What Is a Bearish Candle?

A bearish candle is a candlestick in which the close is lower than the open, meaning the price fell (closed down) over that period.

How to Read a Bearish Candle

A bearish candle represents a period in which the close ended lower than the open. The top of the body corresponds to the open and the bottom to the close, so a longer body indicates a larger price decline over the period. Some view a run of consecutive bearish candles as a sign that selling pressure dominated during that stretch.

Points to Keep in Mind

A bearish candle simply shows the outcome of price movement over a past period — it does not mean the price will continue falling afterward. It is important to check it alongside trading volume, other technical indicators, and fundamental information rather than relying on it alone.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

What kind of candlestick is a bearish candle?
A candlestick where the close is lower than the open — meaning the price fell over the period — is called a bearish candle. It is often shown in black or blue, but coloring varies by charting tool.
Does a bearish candle mean the price will keep falling?
A bearish candle only shows that the price fell during that particular period; it does not guarantee subsequent price movement. It should be treated as just one input, used alongside other information, when considering what might happen next.