The First Red Candle After a Run

Signal or Trap?

A strong push. Momentum candles. Then — red. Many traders panic. Some flip short. Others exit too soon. But here’s the truth: the first red candle after a strong run isn’t always a reversal. It could be just a breather.

Market makers know what you expect. They use that first red candle to shake confidence and trap reactive traders. The key is knowing the difference between a controlled pullback… and a true shift in sentiment.

“A single red candle doesn’t end a trend. It challenges your patience.”

Study the structure. Is the pullback on low volume? Are buyers still defending key levels? Did the breakout zone become support? These are clues. Context is everything.

Don’t trade the color of the candle — trade the story behind it. The best setups often come after that red candle… not because of it.

Red doesn’t mean reversal. It means observe. Then strike with clarity.