Hollow Candles Explained and Examples! Graphic Guide Part 2
Updated
What is Hollow Candles?
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.
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.
Note
All Part
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