Stock Candlesticks Explained: Red, Green, Hollow, Filled… // Stock chart reading tutorial tips


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

6 thoughts on “Stock Candlesticks Explained: Red, Green, Hollow, Filled… // Stock chart reading tutorial tips”

  1. Great video as always, David. This will save me a lot of time when friends ask what candlesticks are πŸ™‚

  2. I love your videos , very easy to follow. Simple to the point. It’s becoming repetitive in all of my comments but I must say ,Thank You for your time and effort. It is greatly appreciated.

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