Green is potentially bullish and that's when traders might take long position Red is potentially bearish and when traders might take a short position When price goes red to green many traders take a long position When price goes green to red that's when the short traders come in Going long traders use close below previous close as stop Going short traders use close above previous close as stop Candlestick patterns will give you the clues needed to buy and sell Reversal patterns are very helpful for early buy or sell signals Risk management is key when buying and selling