What Is a Red Candlestick?

• A red filled candle is common and occurs when the close is below the open and prior close.
• A hollow red candle is when the close is below the prior close, but above the open.
• Charting platforms may differ in how they draw candlesticks; some may not take into account the prior close.

How Does a Red Candlestick Work?

A red candlestick quickly conveys that the price moved lower during the period, as well as the open, high, low, and close. The longer the candle, the greater the price movement over the period.

Meaning of Red Candlesticks:

• Red Filled Candlesticks happen when the close is below the open and prior close.
• Red Hollow Candlesticks happen when the close is greater than the open but lower than the prior close.