There are two types of red candlesticks: hollow and filled. These two types help investors gauge an asset’s price movement and potential trends by comparing intra- and interday price changes.

A red candlestick will appear to be hollow when the closing price is higher than the opening price but lower than the prior day’s closing price suggesting an overall upward trend despite the intraday decrease.

A filled red candlestick signifies both a closing price that is lower than the opening and prior day’s closing price, reflecting a downward trend.