Why aren't filled black and hollow red candlesticks intuitive mathematically?
I know that color (black vs. red) compares today's close with the previous close, and hollowness (hollow vs. filled) compares today's close with today's open. But the two candlesticks, embolded below, still baffle many amateur investors. Why are they counter-intuitive? What's the reason for this oxymoron mathematically?
Notice that these rules are subtly different from the rules for determining whether to draw a filled candlestick or a hollow candlestick. Those rules (stated in the first paragraph above) rely on the relationship between the opening price for the current day and the closing price of the current day. These subtle differences can lead to what we call “oxymoronic” candlesticks – candles that are colored bullishly, but filled bearishly (a filled black candlestick) or vice versa (a hollow red candlestick).
Candlestick colors and fillings tell chartists the story of the trading day. Colored candlesticks are made up of four components in two groups. First, a close lower than the prior close gets a red candlestick and a higher close gets a black candlestick. Second, a candlestick is hollow when the close is above the open and filled when the close is below the open. The table below shows the four combinations.
enter image description here (Can someone make this image show up please?)
For more details on candlesticks, see https://stockcharts.com/articles/mailbag/2014/05/whats-the-difference-between-solid-and-filled-candlesticks.html, https://thetradingbible.com/how-to-read-hollow-candlesticks (too many typos though), https://www.investopedia.com/terms/r/red-candlestick.asp.