What's the Deal with These Colored, Filled and Hollow Candles? (2024)

FAQs

What's the Deal with These Colored, Filled and Hollow Candles? ›

A filled candlestick indicates that a security moved lower after the open. This is important information. Moving lower after the open reflects weakness, while moving higher after the open reflects strength. Red-hollow and black-filled candlesticks also convey important information on price action.

Hollow candles can provide traders with a more accurate and intuitive view of market sentiment and trends than traditional Japanese candlesticks. The color of a traditional Japanese candlestick is used to interpret market sentiment for a specific time period.

A black or filled candlestick means the closing price for the period was less than the opening price; hence, it is bearish and indicates selling pressure. Meanwhile, a white or hollow candlestick means that the closing price was greater than the opening price. This is bullish and shows buying pressure.

If the close is higher than the open - the candlestick mid-section is hollow or shaded blue/green. If the open is higher than the close - the candlestick mid-section is filled in or shaded red.

A red candlestick is a price chart indicating that the closing price of a security is below both the price at which it opened and that at which it previously closed. A candlestick may also be colored red if the close is below the prior close but above the open. It will usually appear hollow in this case.

In a quite unique way, candles radiate messages of romance, passion, security, warmth, hope, spirituality, mystery, to name just a few. Candles indeed are a burning example that the whole is more than sum of its parts – be they just a little wax and wick as they are.

The seven lamps allude to the branches of human knowledge, represented by the six lamps inclined inwards towards, and symbolically guided by, the light of God represented by the central lamp. The menorah also symbolizes the creation in seven days, with the center light representing the Sabbath.

Soy wax, coconut wax, and beeswax candles are some of the cleanest burning options out there and candles scented with essential oils tend to be free of synthetic fragrances, so be sure to seek those nontoxic options out if that's important to you or your recipient.

Natural materials such as beeswax, soy wax, and coconut wax all have much longer burn times than petroleum-based candles made from materials like paraffin wax. Natural candles also benefit from coming from renewable sources and don't produce excessive soot and smoke.

The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. These candlesticks should not have very long shadows and ideally open within the real body of the preceding candle in the pattern.

What is the rarest candlestick pattern? ›

The rarest candlestick pattern is often considered the "Abandoned Baby." This pattern is a reversal indicator characterized by a gap followed by a Doji, which is a candle with a small body, and then another gap in the opposite direction.

Traditionally, candlesticks have not been different colors. If the close was less than the open, you would get a filled candlestick; if the close was higher than the open, you would get a hollow candlestick.

Candlesticks are typically colored, with green or white indicating bullish (upward) movements and red or black denoting bearish (downward) trends. Doji candles, characterized by small or nonexistent bodies, represent market indecision. It may not receive a color if the price has not changed for a given period.

Which Candlestick Pattern is Most Reliable? Many patterns are preferred and deemed the most reliable by different traders. Some of the most popular are: bullish/bearish engulfing lines; bullish/bearish long-legged doji; and bullish/bearish abandoned baby top and bottom.

A Heikin-Ashi candlestick is hollow when the HA-Close is above the HA-Open; conversely, Heikin-Ashi candlesticks are filled when the HA-Close is below the HA-Open. This is similar to normal candlesticks, which are filled when the close is below the open and hollow when the close is above the open.

The hammer candlestick is found at the bottom of a downtrend and signals a potential (bullish) reversal in the market. A hammer is a candlestick pattern, when a stock opens then moves a lot lower during the day then rallies back near the opening price.

Ingenious! It works like this: as the flame melts the candle's wax, it collects in a mould below, which handily has a wick all ready and waiting. When the mould fills up, the natty new candle can be removed, and ta-da! The process begins again.

An inside bar candle holds significance in technical analysis as it represents a period of consolidation or indecision in the market. It can indicate a potential pause in the current trend before the price makes a decisive move, which traders can use to anticipate and plan their trading strategies accordingly.