Candlesticks

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

I am trading using FXCM MT4 platform. I’d like to know what the difference between the candlesticks that are “filled in” and the candlesticks that are "hollow. ty

2

I’m not 100% but I would imagine that it’s just the way that you have MT4 configured: it’ll no doubt be the simple answer of one will be a bullish candle & the other bearish. As to which way round it is, I’d need to see it but I’m sure that you can figure it out on you own.

3

Hi DrMonroe07,

The “filled in” candles are bearish candles signifying a down move. Notice that those candles close at a lower price than they opened. Bearish candles are sometimes shown as red candles on other charting platforms.

The “hollow” candles you see are bullish candles signifying an up move. Notice that these candles close at a higher price than they opened. Bullish candles are sometimes shown as green or blue as shown in the examples below.

As you may have noticed, the information provided by the candlestick chart (high, low, opening and closing prices) is the same information provided by the Bar Chart. However, the information is much more readily discernible when put in this format, because of the colors of the candles.

When looking at any candlestick, a bullish candle or a bearish candle, the top of the wick and the bottom of the wick represent the highest and lowest price to which the pair traded during that time frame. The main difference between a bullish candle and a bearish candle, other than the color, is where the opening and closing designations appear.

Click here for more info on how to read a candlestick charts.

Jason

4

I’m thinking that a trip to The School of Pipsology may be in order. Read through the school & walk before you can run!

5

Here is the direct link to study about Japanese candlesticks

6

generally, this could mean different things to different traders.
a filled in and hollow candle can be interchangeable (have the filled in candle as a bullish or bearish candle), depending on the preference of the trader. You could easily change this setting or preference in most or all charting applications.

7

Very useful reply.

8

I am wondering how to code Candles in MT4 for a somewhat different approach. That is - A candle closing below the mid-point is red, closing above the mid-point green, black at midpoint close?

9

Actually it would be better to designate the colour range into thirds.