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There are many misconceptions when it comes to determining 

whether a candlestick bar is truly bullish or bearish. So far 

candlestick bars analysts are doing all sort of things in the financial

markets. The time has come to refute all those wrong arguments, 

and put candlestick technical traders on the right path. Be sure to 

read this article in full, and begin to quickly improve your candlestick 

bar analysis today. Get started.

Generally, a bullish candlestick bar is the bar that closes above the 

opening price.
However, a very bullish candlestick bar is the bar that closes near 

the high. Note that a long candlestick bar that closes near the high 

is more bullish than another

smaller bar that also closes near the high.

Generally, a bearish candlestick bar is the bar that closes below the 

opening price. Nevertheless, a candlestick bar that is theoretically 

bearish is bullish if it closes near the high or at least above its median 

line (especially long tail candlesticks at a key level).

Note that those strange bullish candlestick bar often appear at a reliable 

support level where there is a high demand to buy the asset.
Though, the price plummeted from the opening price, it steadily recovered 

and closed near the high or above its median line. One may say that the 

initial sellers were kicked out of their bearish positions. Though, the 

candlestick bar did not close above the opening price, the winners at the 

end of that period are bullish traders.

This is usually the case at the price target levels or key resistance levels 

when a candlestick opens then rises to form a long range candlestick bar, 

but closes near the low (or at least below its median line).

Warning: When one is dealing with a candlestick pattern or another pattern, 

the validity of the pattern is relative to the place where the pattern is formed. 

 If one is analysing a pattern, and one forgets that warning, one will be going 

round and round.
The pattern that I am talking about in this paragraph must occur at a resistance 

or bullish price target level.

On can deduct from that candlestick bar that the real winners on that day are 

bearish traders because the price rose (and has an extended range) then 

succumbed to the bearish pressure and closed near the low.

Initially, a long bearish candlesticks that close above their median lines are 

bullish to a certain degree depending on their locations.

Remember that the location of the candlestick bar will determine the validity 

one's candlestick bars analysis.

On the other hand, initially bullish candlestick bars that close below their 

median lines are practically bearish depending on their relative positions 

to key support and resistance levels.

In practical trading, professional technical traders draw the high, low and 

median line of a candlestick bar. Those levels especially on the weekly, 

monthly, quarterly and yearly charts are essential key price levels 

(support and resistance).
They also use the opening and closing price levels on the quarterly and 

yearly charts.
Note that amongst those key support and resistance levels, the most 

influential (and popular) is the median line.

Conclusion

When one is analysing a candlestick bar, one must check its location. Is 

it at a support or resistance level?

One ought to compare also the closing price in relation to the median line 

because the median line divides the range

of the candlestick bar into two areas (bullish above but bearish beneath). 

 One must remember that candlestick

bars that close near the high are practically bullish even if theoretically they 

are bearish. In contrast, a candlestick

bar that closes near the low is to a certain degree more bearish even if it 

closes above the opening price.

To avoid candlestick bars analysis mistakes, it is crucial to check where the 

bar is. By defining whether the bar is

more bullish than bearish and vice versa, one will be able to interpret 

candlestick patterns more accurately, and perform

a better technical analysis.

I hope this will open up your understanding of candlestick bars, and help 

you become a better candlestick bar analyst.

I delight in sharing more practical trading tips and tricks, and hopefully this 

has been useful to you.

Feel free to share this article on your favourite social websites.

We wish you the very best in your candlestick bars analysis.

Thank you for reading.

For more practical candlestick bars and patterns trading tips and tricks, 

check out our YouTube video play-list below.

The play-list compiles videos that are carefully prepared for those who 

want to trade candlestick bars more

precisely like a pro. It is suitable to both beginners and more experienced 

technical traders.

Its objective is to correct all past misconceptions about candlestick bars 

and patterns technical analysis.

Watch more.