Hollow zero refers to a specific candlestick pattern in technical analysis used to identify potential reversals in price trends. It is characterized by a small, hollow candlestick with no upper or lower shadow, indicating indecision and a lack of momentum. Hollow zeros are often seen as a bearish signal, suggesting a potential downward reversal in the trend.
Traders may use hollow zeros to identify potential trading opportunities, such as selling a stock or currency pair after a hollow zero appears at the top of an uptrend. However, it is important to note that hollow zeros are not always reliable indicators, and should be used in conjunction with other technical analysis tools to confirm trading decisions.