Filled Black Candles -

71Warhawk

What is the significance of a Filled Black Candle and why is there a Pre-Defined Scan for them in SC.com? I have searched the internet for an answer and cant find a satisfactory answer. Only thing I can surmise is that it may be a candidate for an intraday turn around.

markd

https://support.stockcharts.com/doku.php?id=faqs:what_does_a_solid_black_or_hollow_red_candlestick_mean

The link explains when they are drawn.

The significance is such a candle may indicate a reversal in short term trend. Basically, the bar gaps up on the open, showing extreme (and possibly climactic) bullishness, but closes below the open, indicating bulls lost control of the market during the session (but not enough to completely undo the opening), implying at least short term exhaustion. Sometimes it works out that way, sometimes it doesn't.

This is probably more likely to show up on small and mid cap stocks, where the traders are smaller and more emotional, and so more easily manipulated into chasing a rally. But it also shows up on stocks in a Wyckoff-like accumulation period (a range following a long down leg - i.e. the mark-down phase) where the sponsoring institutions (the "composite operator" in Wyckoffian terms) deliberately discourage the bulls from raising prices out of their accumulation zone. So the bulls see an approaching breakout at the top of the range and jump in, and the institutions use up (sell) some their inventory to squash the buyers.