Judging the bullish or bearish nature of candlesticks is essentially about seeing which is more persuasive: the body or the upper and lower shadows.

The principle is: when bulls are dominant, the bullish candlestick body is full and the close is near the high; when bears are dominant, the bearish candlestick body is solid and the close is at a low.

The appearance of long upper and lower shadows or dojis usually signifies a tug-of-war between bulls and bears, indicating neutral market sentiment and unclear direction. This candlestick pattern represents hesitation among active funds, and the market lacks continuity, making it unsuitable for aggressive trading.

For example, the Bitcoin #bitcoin daily candlestick on June 15, 2025, is a typical signal of balance between bulls and bears.

Most new traders tend to fall into two extremes when understanding candlesticks: one is to judge the trend based on a single candlestick, ignoring the position, structure, and context; the other is having a weak foundation, and even when the signal is clear, they hesitate to take action.