A rising daily candle shows institutional money aggressively buying, willing to pay higher prices to accumulate. Day traders cancel themselves out within the day, so a higher close only happens when long-term capital is moving the price.
This is exactly what happens in the market every single day. It's crazy. You're basically putting X-rays glasses on and seeing what's going on behind the candles. Let's say it's a bullish candlestick. What does this mean? It means that buyers were ready to accept paying higher prices here, higher prices here, and so on and so forth for the entire day. It means that buyers were aggressive enough, and in the balance of risks of opportunity versus, you know, slippage risk, they gave more priority to slippage risk. And they were smart money with these meta orders split throughout the day, were willing to keep paying higher and higher prices as long as they can get hands on the underlying asset. Let's say this is the S&P. What does this mean? A daily candle means that investors are joining the party. Because if it was only day traders, a day trader's impact on the stock market is one tick up when you buy, one tick down when you close the trade. So your net impact at the end of the day in the entire order flow, the temporary impact of your order flow is zero. So your candle, if no one invested today, would be flat. So the reason why a day candle closes upwards is because there's long-term traders inside.
