Many traders day by day enter the platform without knowing the other types of existing candles, believing themselves "Professionals" and decide to stop learning because they believe that candles is everything, well if you like to learn, you are welcome to this guide in which we will explain how all types of candlestick chart work.
Hollow Candles
Hollow candles is made up of 2 types of candles. Bears and bulls, of course. And these at the same time have 2 divisions. Hollow Candle and Full Candle.
The Hollow candle is usually empty. And the full candle is usually totally full.
There is a lot of confusion when people ask the difference between a solid candle and a hollow one, as the question itself makes you think that you are comparing a hollow or solid candle to a traditional candle chart where all candles are solid.
Traditional candlestick charts (which are well covered in our technical analysis guide) are all solid and behave completely differently than a solid candlestick on a hollow candlestick chart.
Let's take a look at the new hollow candlestick chart language to understand how it works:
Green Candle Rules in Hollow Candle Chart:
1- Regardless of whether it is hollow or not. It is greater than the previous candle.
Full Candle Green in Hollow Candle Example:
Hollow Candle Chart / Candle Chart
- Example in Par Crypto, Jan 18, 2021, Kraken, Hollow Candle chart type, Time 1d:
Hollow Candle:
Change Candle:
2- Regardless of whether it is hollow or not. It is greater than the previous candle.
Hollow Candle Green in Hollow Candle Example:
Hollow Candle Chart / Candle Chart
- Example on LTC exchange Coinbase crypto pair, May 5, 2021, Graph 1d. We can see that the green candle in the hollow candle graph is greater than the previous candle, fulfilling rule 2.
Hollow Candle:
Candle:
Red Candle Rules in Hollow Candle Chart:
1- Regardless of whether it is hollow or not. It is lower than the previous candle.
Hollow Candle Red in Hollow Candle Example:
Hollow Candle Chart / Candle Chart
- Example on Nasdaq, April 21 of this year. Period 1d. Hollow chart type then we change to Candles.
Hollow Candles:
Candles:
2- Regardless of whether it is Full or not. It is lower than the previous candle.
Full Candle Red in Hollow Candle Example
Hollow Candle Chart / Candle Chart
- Example Nasdaq October 21, 2020. As we can see regardless of whether it is full or not, the price closes below the previous candle.
Hollow Candle:
Candles:
Conclution Hollow candles give you a new way to see more information on a trading chart and to perceive when an uptrend or downtrend 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 we are! The most important thing is not to confuse them with traditional candlestick charts, as we now understand that they behave differently. Also, it is quite useful to identify Candle Patterns. That we will see later. Remember the rules are based on the opening and closing price, do not rely on the body.
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KsrInc
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Correct me if I'm wrong, but your open and close arrows are sometimes off. Basically a full candle simply means that the closing price was lower than the opening price, regardless of whether the candle is higher or lower than the previous one. Which isn't shown in the full red candle example, where the opening price is lower the the closing one. Also for the hollow candle green example, for the classic green candle, the opening and closing price are inverted. Thank you for your work, best
SukoshiKanatomo
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@KsrInc, yes, this article has errors. Wanted something to share with friends but guess I'll keep looking as I don't want to confuse them.
captkeebz
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this is confusingly written. i still don't know the rules of hollow vs full...
JanKM
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@captkeebz, Hollow/full shows the change for the individual candle: Hollow candle = increase, full candle = decrease. The color shows the change compared to the candle before: Green candle = increase compared to previous candle, red candle = decrease compared to previous candle
mohitwork0050
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@JanKM, Why does there is instance when green candle is filled (solid green) when other green are hollow?
JanKM
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@mohitwork0050, Solid green candle means that the price has decreased since opening of the candle (=solid), but has increased compared to previous candle (= green). Hollow green candle means that the price has increased since opening (=hollow), and also increase compared to previous candle (=green).
tdview2020
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Hard to understand the explanation here. Had to google other sites to clarify.
UnknownUnicorn25359856
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I started trading recently..
I started using the Haiken Ashi, Renko and all the other charts...
Just drawing all the tech indicators is tedious and it only uses the existing date in the regular candle-stick chart..
This is very poorly written. Please re-write it correctly so we can understand it.
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