How to Read Hollow Candlesticks – Differences Explained

Hollow candlesticks use coloring material and fill attributes to show price behavior .

  • When a candle is SOLID it means that the CURRENT closing price is lower than the same period’s open price.
  • When a candle is HOLLOW it means that the CURRENT closing price is higher than the same period’s open price.

The candle ’ s color compares current close price to the former candle ’ s close price, so :

  • Green candles mean that the current closing price is GREATER than the previous candle’s close price.
  • Red candles mean that the current closing price is LOWER than the previous candle’s closing price.

This is how hollow and solid ( or filled ) candlesticks normally look :
Hollow Candlesticks Examples There is a lot of confusion when people ask the difference between a solid and a excavate candlestick, as the question itself makes you think that you are comparing a hollow or solid candle with a traditional candlestick chart where all the candles are solid.

traditional candlestick charts ( which are well covered in our technical analysis guide ) are all solid and behave completely different from a solid candlestick in a hole candlestick chart .
Let ’ s take a attend at the new lyric of hollow candlestick charts to understand how it works :

Hollow Vs. Solid Candlesticks

The excavate or filled property in these candlesticks serves the determination of showing if the current close price of the candle is higher or lower than the like period ’ s open price .
Let ’ s not focus on the tinge for a moment and equitable look at whether it ’ s filled or not :
Green Hollow Candle If the candlestick is hollow as the one above, it means that the candlestick ’ s current close price it ’ south GREATER than the candle ’ mho afford price, so we can think of it as a bullish candle .
Green Solid Candle now here it ’ s where it gets crafty, in the candle above which looks precisely like a standard candlestick that we ’ ve seen before, the fact that its solid ( filled ) means something completely different, in this case it ‘s telling us that the stream closure price it ’ s LOWER than the candle ’ sulfur unfold price .

Green Vs. Red Candles in hollow candlestick charts

In hollow candlestick charts, the tinge attribute of the candle is determined by comparing the candle ’ s current close monetary value against the PREVIOUS candle ’ s close price, let ’ s take a expect at an example :
Red Solid Candle A red candlestick ( careless if it ’ south hollow or not ) means that the close price is LOWER than the former candle ’ s close price .
A greens candlestick ( careless if it ’ mho excavate or not ) means that the close price is GREATER than the previous candle ’ s completion price.

Examples of reading hollow candlesticks

Below you ’ ll see well-defined examples on hole and hearty candlesticks and what each impute is telling us :

Case 1:

Green Hollow Candle Explained

Case 2:

Green Solid Candle Explained

Case 3:

Red Hollow Candle Explained

Case 4:

Red Solid Candle Explained

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Conclusion

Hollow candlesticks give you a fresh manner to see more information on a trade chart and to perceive when a bullish or bearish drift is forming based on a combination of hollow or filled candles and as you know, the more information we get when we trade then the better off are we !
The most significant thing is not to confuse them with traditional candlestick charts as now we understand they behave differently.

Read more: Forum Policy

besides, we would like to note that chart tools are identical different across deal platforms, the same green candlesticks ( hollow or not ) can be black and the red one uphold it ’ s color, it ’ second very crucial to check the differences in your chart ‘s settings .
Visit our brokers section, open a release demonstration account with any of them and practise trade using empty candlesticks .
Have fun !

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