Disqus - Latest Comments for RSH

Re: Bringing Out the Chartist in the Apple Investor

RSH — Tue, 11 Nov 2008 01:12:23 -0000

I've got a question for you. You said: "There are two basic types of candles, solid and hollow, or red and white." In fact, though, there are four types of candles on the charts from StockCharts.com. There are solid red candles, solid black ones, hollow red ones, and hollow black ones (which I guess you could call white candles). Am I right in thinking that a solid candle indicates a closing price lower than the opening, and a hollow candle is for a closing price that is higher than the opening? If so, what is the significance of red versus black?

Re: Bringing Out the Chartist in the Apple Investor

RSH — Thu, 13 Nov 2008 16:42:36 -0000

Aha! Except that, looking at the above chart, I think your explanation is not quite right. See, for instance, the solid black candle on Jul 14 and the hollow black candle on Oct 6. A candle is black or red depending on where it closes relative to the previous close, not the previous open.

To summarize, I suppose you could call the black candles bullish (closing prices are rising) and red candles bearish (closing prices are falling). That's useful information.

Thanks for the explanation. I understand these charts better now.