Hollow Red Candles

Now notice that the candle is hollow, not filled in like the red candle 2 days prior.  This is intentional and meant to show yet another piece of information that Japanese Candlesticks can convey about a stock that line and bar charts do not.  Hollow Red candles are special because they show a reversal of sentiment within the day.  In a quick glance a hollow red candle tells that the day was bullish despite ending lower.  Look for these candles and their opposite, the Solid Black, to get further insights into short term swings in sentiment in the market.

Trade’m well!