Supply and demand flow in a bullish candle

In a bullish candle, the supply and demand flow indicates a stronger demand for the asset compared to the available supply. Here's how the supply and demand dynamics typically play out in a bullish candle:

Increased Buying Pressure: In a bullish candle, buyers dominate the market, exerting upward pressure on the price. Traders and investors perceive the asset as undervalued or attractive, leading to an increase in demand.
Higher Highs: The bullish candle will typically have a higher high compared to the previous candles. This signifies that buyers were willing to pay higher prices to acquire the asset, indicating their confidence and eagerness to buy.
Support Levels Holding: During a bullish candle, support levels play an important role. As buyers enter the market, they provide support by purchasing the asset near key support levels, preventing the price from declining further. This reinforces the bullish sentiment and strengthens the demand.
Long Lower Shadow or No Lower Shadow: In some cases, a bullish candle may have a long lower shadow or no lower shadow at all. This indicates that buyers aggressively pushed the price up from the opening, signaling their strength and dominance in the market.
Increasing Volume: Volume tends to be higher in a bullish candle as buyers actively participate in the market. The increased volume reflects the growing demand and confirms the strength of the bullish sentiment.
Decreasing Selling Pressure: In a bullish candle, sellers typically exhibit weaker selling pressure as buyers overwhelm the market. The decline in selling pressure can be observed by a smaller upper shadow or no upper shadow in the candlestick.

Overall, the supply and demand flow in a bullish candle indicates a strong demand for the asset, leading to upward price movement. It suggests that buyers are willing to pay higher prices, and sellers are less aggressive in their selling activity. These dynamics create a positive market sentiment and support further upward momentum.