Table of Contents
- What Is a White Candlestick?
- Understanding White Candlesticks
- Candlestick Shading
- Candlesticks vs. Bar Charts
- Technical Analysis and Candlestick Indicators
- What Does Candlestick Mean?
- What Does a White Candlestick Mean?
- What Is the Most Powerful Candlestick Pattern?
- What Is the Difference Between Red, Green, Black, and White Candlesticks?
- What Does a White Line in a Candlestick Chart Represent?
- The Bottom Line
What Is a White Candlestick?
Let me tell you directly: a white candlestick shows a period where the security's price closed higher than where it opened. It's a point on a candlestick chart that represents a bullish period.
On some charts, you might see an up-candlestick as green or black. These contrast with red candlesticks, which mean a lower closing price than the prior period.
Understanding White Candlesticks
White candlesticks indicate a positive price increase for a security during the observed time. The body is usually white on charts to show the net result was up, but you can choose colors like blue or green in some systems to represent gains.
A candlestick displays the open, high, low, and close for your specified period, like daily or hourly. The wicks show the high and low, and the body covers the open to close range. This marks the full price range for that period.
These charts are handy for you as a technical trader because they display a full day's price movement easily. Defaults are often white or green for up and red or black for down, but you can customize colors in modern packages.
Red or black candlesticks are the opposite—they show downward movement with close lower than open. If open and close are the same, it's a doji, shown as a dash.
Candlestick Shading
Most software lets you change candlestick colors, but common ones are white, black, or green filled or hollow, and red filled or hollow. Each means something specific.
White, green, or black filled candlesticks happen when close is greater than prior close but lower than open. Hollow versions occur when close is greater than both prior close and open. Red filled means close below open and prior close. Red hollow is close greater than open but lower than prior close.
The two most common are white, green, or black hollow for strong uptrends, and red filled for strong downtrends. Red hollow and black filled are rarer because they need a price gap.
Candlesticks vs. Bar Charts
Candlesticks and bar charts give the same info—open, high, low, close—but differently. A bar is a vertical line with left horizontal for open and right for close, no real body like a candlestick.
Technical Analysis and Candlestick Indicators
Indicators form from combinations of white, red, and doji candlesticks. You can use many short-term and long-term formations for investing. As a technical analyst, you can quickly get info from a candlestick's color before diving deeper.
For instance, a white, green, or black filled might suggest price is top-heavy, while red filled shows a strong downtrend. Use these to gauge sentiment.
Don't trade on candlestick patterns alone—combine with other analysis. You can use charts to spot breakdowns or breakouts, and indicators like RSI to confirm trend strength.
Common Candlestick Patterns
- Ascending channel: Formed when price rises, mostly with white candlesticks.
- Descending channel: Formed when price decreases, mostly with red candlesticks.
- Bearish abandoned baby: Three candlesticks with a doji in the middle, signaling downside breakout—white, then doji above prior close, then red below prior close.
- Bullish abandoned baby: Opposite, signaling upside reversal—red, doji below prior close, white above doji open/close.
What Does Candlestick Mean?
A candlestick is a symbol you use in trading. It tells if price increased or decreased, by how much, and with what momentum.
What Does a White Candlestick Mean?
It means the candle closed higher than it opened. It's the opposite of a red candlestick, which closes lower.
What Is the Most Powerful Candlestick Pattern?
Powerful bullish ones include Three Line Strike, Bullish Abandoned Baby, and Morning Star. Bearish ones are Three Black Crows, Identical Three Crows, and Evening Star.
What Is the Difference Between Red, Green, Black, and White Candlesticks?
Red means close lower than open. Green, black, and white all mean close higher than open—the color difference is just from different programs, but they signify the same.
What Does a White Line in a Candlestick Chart Represent?
It represents a close higher than open but with little fluctuation. Candles are taller with bigger spreads, so a flat line means nominal movement.
The Bottom Line
A white candlestick signals that closing price was higher than open for that period. It can be green or black too, indicating higher close. Many strategies use these patterns but confirm with other indicators.
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