The Psychology of Colors on a Forex Chart

Colors have a massive impact in our life, none of us can deny it, they effect the way we think, the way we act and essentially control many aspects of our life. In fact there is not much aspects in life that are not influenced in some way by colors.

Firstly, let’s look at some examples, at a young age it is not uncommon for boys and girls to see particular colors differently, young girls tend to favor pink and young boys tend to favor blue. This seems normal yeah, but is it really? It is confronting to think and ponder on, is it not? To think a young boy could be scared stiff by pink and not wanting to associate with this color is serious, well at least it is for a young boy and I remember, no way was I going to have pink on my school bag or pink on my lunch box..

… But, wait on here, pink is just a color and a not a bad color at that.

… Now, here is the kicker, it does not stop here does it? It continues on with red being a color associated with the aspect to stop on traffic lights when we drive a car and green being a color to go. It also creates influence in symbols such as what the Police use in there lights or what a Ambulance uses for an emergency. Overall colors and symbols have a massive impact in our day to day life. Certainly, some of these effect us more than others on a psychological level.

Now, before I move onto addressing this impact of colors in Forex, first stop, close your eyes and imagine driving to a traffic light intersection. Then driving on a red light at the intersection or stopping on a green light at the intersection.

Now, let’s look at remote societies for a moment which are not effected or less effected by western influence, do they have these same psychological effects or reactions? Well they could be completely unbiased to pink or colors or even green may mean something completely different at a traffic light. They may also, think psychologically different to certain colors.

… Now, hopefully that is making you think and if so, good, that is what I wanted.

Now let’s go to the Forex Chart and look at some colors and there effects on the mind. Could it be that certain colors can effect us the same way on a Forex Chart in how we see the chart.. Let’s have a look?

audusd green and red

Firstly Normal Green and Red Chart – Looks Right Yeah?

audusd red and green

What about the Opposite with Red going up and Green Down, How do you feel?

all red chart

How does Complete Red Make you feel? Are you feeling a little confused and strained?

all green

Green seems better, but is it really..? Does it seem like the market is up always..?
black and white

Let’s go back to basics again, the Standard Black and White Template I use on Regular Weekly Outlooks. How does that make you feel? Should be okay again yeah?

white and black chart

However what about black as up and white as down. How do you feel now?

Let me know how you feel overall, did any of these charts have you confused, strained or another interesting emotional response? Let me know if it effected you in the comments below.

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Practically those colors did affect lots of traders.

    However, in order to be a winner in Forex trading, one should have master the emotion and be disciplined. The chart setting should be as minimal as possible.


    • Good points Jo, yes there are lot’s of components in trading that make up psychology in Trading I agree.. However this article more reflects the conflict of how the mind reacts psychologically to certain colors on a chart ( whether good or bad ) and how those reactions make up how a trader feels about a chart or a pair. Testing a trader in a way to certain simple color changes and how it makes them feel. Can give a good insight to certain traders about how they feel about the charts and trading overall.


  2. GOOD ONE. the first chart I think saw was green and red green long, red short that sunk in and now that’s all I use. thanks man you do a wonderful job

  3. I like Black and White Template. But I thought it’s not Standard….standard – green on black.

  4. Hi Timon,

    I think you are the first one that has ever touched on a topic I have always wondered if I was the only one going through the colour concept thing on the charts. As an aspiring trader over the years, i have seen hundreds of charts and the number 1 thing that suggest to me i will be learning good off the chart is the colours. Some colours will just not allow me to sink in to my study or grasp the chart in total. For years I knew somehow I may not be alone, but never voiced it; Yes I am not the best in identifying colours, but the usual and common Green for buy and Red for sell suits me on a pure white background, and have stuck to same colours for my trends and S&R levels for any particular timeframe, which then helps me know which time frame I am working at any particular time when i see the colour of my trendline. If i ever drift of my colours confusion sets in somehow. Thanks anyway for this rare observation of yours.


    Peter Opis

    • You’re welcome Peter and yeah I agree with you, it is an important topic which can effect the psychology of how one reads the charts. Importantly, how a trader can deal with it also if the colors do not match how they see the market waves on a pair. Overall it shows the power of conditioning with colors in general.

  5. I totally agree, I often switch my screen on all black bar not even candle in order to keep my mind clear on what is the price chart telling me.

  6. Hi Timon
    Great Topic, we have a saying in Iran that if you want to see what others see about you then you must step outside yourself and view your actions as a third party (unbiased approach). to be honest i never thought about the colour psychology until now and i must admit it has had a great impact in my trading as a big red candle or green makes me think twice about the direction of the move, even though it might not even be the origional prognosis i came up with. Im going to be more aware of this and not rush in like i have before, my motto from now on going to be Structure Structure Structure. Thanks for the insight and keep up the good work.

  7. how about not using candlesticks also. Why not use open high low close black bars all bars black.

  8. Funny enough Colors can be used as another part of your own price action if you think about it. Mostly everyone uses same COMMON colors, good because we want that, people are predictable in nature so now we think about your opponents mindset by what there thinking.. by where their entering? why they entered? where there stops are?, where their emotions of fear, greed, hope and praying for miracles happen displayed out on the chart.So Red candles are good extreme levels if you understand price strucuture. Well informed traders use these areas to their advantage and capitalize. Markets are made up by only traders buying and selling and their thought processes are projected onto a chart., part of your edge is knowing other traders psychology .

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