What are Hollow Candles? What types are used?

Hollow candles represent price movements in financial markets. They are charts with a main vertical line that shows the price range. They have horizontal lines at the ends. These indicate open and close.

What makes them special is their coloration. It's not complicated. A hollow candle means that the price closed higher than before. A filled candle shows the opposite. Green for rises. Red for falls. Simple.

These candles tell us stories of the market. Several hollow green candles together? It seems that buyers are taking control. Many red candles in a row? Sellers are in charge, without a doubt.

The patterns they form are fascinating. The bullish engulfing occurs when a green candle "swallows" a previous red one. It's as if the buyers are saying "here we are". It doesn't always work, but it's interesting to see.

There is also the bearish engulfing. The same but the other way around. A red candle that engulfs a green one. Sellers attack. The market could fall.

The Doji is special. Small body, long wicks. It looks like no one knows what to do. Buyers and sellers are in a technical tie. A moment of respite in the chaos.

And then there is the Harami. A small candle inside a larger one. It’s as if the market is in doubt. The trend is losing strength. Perhaps something is about to change.

In 2025, many traders use these candles. They are useful in stocks, forex, crypto. They are not perfect, but they help to understand market sentiment. Sometimes it seems like magic, but it's just another tool.