Hollow candles charts: what you need to know and how to use them
Unlike traditional candlestick charts, hollow candles charts use color and "fill" to indicate both price direction, and the relationship between open and close prices.
There are four types of hollow candles:
- Green hollow candles. Close price is higher than the opening price, and the price moved up compared to the previous close (bullish momentum)
- Green-filled candles. Close price is lower than the opening price, but the price moved up compared to the previous close (potential strength)
- Red hollow candles. Close price is higher than the opening price, but the price moved down compared to the previous close (potential weakness)
- Red-filled candles. Close price is lower than the opening price, and the price moved down compared to the previous close (bearish momentum)
Enabling the chart type
Once you are on the Supercharts, open the chart type menu on the upper toolbar, and select Hollow candles.
Settings
To make the most of the hollow candles chart, customize it according to your preferences and needs.
For that, choose Settings on the upper toolbar and go to the Symbol tab.
The first section, Hollow candles, lists settings specific to the chart type:
- Body. Change candles' bodies' outlook for enhanced visual appearance.
- Borders. Change the colors of the candles' edges.
- Wick. Choose the preferred color of the candles' shadows.
To maximize the utility of candlestick charts, use Candlestick pattern indicators. To do so, go to the upper toolbar and select Indicators, choose Patterns and scroll down to find Candlestick patterns indicators.
These automated tools detect specific candlesticks and patterns and provide insights into their potential implications. However, it’s best to always evaluate the broader context and not rely solely on automated indicators to make trading decisions.