Stock Candlesticks Explained: Red, Green, Hollow, Filled... // Stock chart reading tutorial tips david moadel
welcome to looking at the markets with David Moadel today I'm gonna tell you
about candlesticks talking about charts because I get a lot of questions about
what does a hollow candlestick mean or if it's not hollow if it's filled in or
solid what does that mean if it's green or black or red what does that mean all
right now it depends on the platform or software or website you're using because
it's different from one to the next one and so ultimately you have to consult
whoever made that software platform website whatever you're using but I've
noticed that for most of them they use the same conventions and so I'm going to
go by what usually is the case and if you have more questions about trading
investing charts fundamentals stocks options cryptocurrency is whatever it
might be you can email me anytime my name is David Modell and my email
address is right down there it's David Modell at gmail.com alright so let's get
into it and we're gonna look at some first some basic concepts and then we'll
look at a chart all right let's look at some candlesticks right now we're
looking at a daily candlestick chart and this is from stockcharts.com I want to
give them credit all right and be aware that whatever I say I might say day but
you can replace that because it's a daily candlestick chart but you can
replace that with you know minute or hour or you know if it's a one-minute
chart or an hourly chart or you can replace it with week or month if it's a
weekly chart monthly chart whatever it is okay so you know replace it with
whatever period or candlestick you're using also be aware that stockcharts.com
tends to use black candles for up days rather than green ones but a lot of
different platforms and websites use green instead all right and red pretty
much universally means a downer or bad day all right
so notice that you've got black candles but you might have a black candle that's
filled in or you might have a black candle that's Hollow or unfilled
all right it still has a black outline so it's still considered a black candle
even if it's not filled in even if it's Hollow
and same with the red candles you might have a red candle that's filled in or
you might have a red candle that's Hollow or unfilled it's it has a red
outline all right even though it's Hollow it's still considered a red
candle it's a red hollow candle so what does all this mean well let's take a
look all right if a candlestick is green or black in color that means that it
closed above where it closed the previous day on the other hand if it's
red in color then that means that it closed below where it closed the
previous day now what if it's hollow or filled in well if a candle is hollow or
unfilled that means that it closed above where it opened that day and if it's
filled in that means it closed below where it opened that day and once again
if you're not using a daily candlestick chart you can replace the word day with
any other timeframe just whatever period or candle you're using so in other words
the color refers to the current closing price compared to the previous candle or
previous day's closing price being hollow or filled refers to whether it
closed up or down just for that day or whatever period you're using compared to
where it opened that day so for example if a candlestick is black and filled
that means that today's price closed above where it closed yesterday because
it's black but below where the price opened that day so it's filled for
example this could mean that the stock price gapped up in the pre-market hours
but then went down a little bit during the trading day here's another example
if a candlestick is red and hollow that means that today's price closed below
where it closed yesterday so it's red but above where the price opened on that
day this could mean that the stock price gapped down during the pre-market hours
but then went up a little bit during the trading day and I think if I
show you some examples on that chart I showed you before that will perhaps help
a little bit for visualizing it alright alright so once again if you remember
what the color means the color indicates how it closed compared to the previous
candlesticks closed or the previous day or whatever your whatever time frame
you're using so for example if it's red that means it closed lower than it
closed yesterday or the previous candle alright if it's black or green that
means that it closed higher than it closed yesterday alright now if it's
filled or unfilled that tells you how it did for that day so for example this one
is black the outline is black and it's hollow and those are both considered
positive all right the fact that it's black means that it closed higher than
it closed yesterday we can see that it did and if it's hollow that means that
it closed higher than it opened that day and we can see that it did alright now
on the other hand this one is black and so that means it closed higher than
yesterday's closed we can see that's true but it went down for the day okay
it closed lower than it opened for that day alright I hope that was helpful to
you if you like this video please give it a thumbs up on YouTube and leave a
comment and subscribe to my youtube channel and hit that Bell on YouTube so
you can receive the latest updates on my financial educational videos and if you
want more help with trading investing putting together a trading plan or
investing plan because you really need to have one if you're going to be
successful in the long term at this then you can email me at any time my email
address is right down there below David Modell at gmail.com and also if you want
to help me out if you see any sponsored or promotional videos go ahead and click
on those please you could even give give them a thumbs up that really helps me
out a lot so I can keep providing these
educational videos for you thank you so much I really appreciate it and I'll
talk to you again soon