What opens Marubozu?

Interpretation. Bullish Marubozu Opening is a single, long white candle which has only upper shadow. After opening, the price increases, forming a long body without lower shadow. The closing price is below the daily maximum, forming an upper shadow. It is a typical bullish day.

What is a white Marubozu?

A White Marubozu is a one day bullish indicator that moves upward and is considered very bullish. If a White Marubozu occurs at the end of an uptrend, a continuation is likely. If a White Marubozu occurs at the end of a downtrend, a reversal is likely.

How do you trade white Marubozu?

Basically, when trading marubozu candlesticks,

  1. Watch for bullish or bearish candlesticks to form.
  2. If bullish, take a long when price breaks above.
  3. Place stop below candlesticks.
  4. If bearish, take a short when price falls below.
  5. Place a stop above candlestick.

What does bullish Marubozu mean?

A bullish marubozu indicates that there is so much buying interest in the stock that the market participants were willing to buy the stock at every price point during the day, so much so that the stock closed near its high point for the day.

Is Marubozu reversal candle?

This candlestick pattern typically has, what is considered as a ‘real body’ and is categorised into two types – the bullish Marubozu candle and the bearish Marubozu candle. These candlestick patterns strongly indicate a reversal or continuation of a trend, depending on their appearance on the trading chart.

What is Marubozu candle pattern?

According to traders, the perfect Marubozu is a candle that has no shadows – upper or lower, unlike most other candlestick patterns. This candlestick pattern typically has, what is considered as a ‘real body’ and is categorised into two types – the bullish Marubozu candle and the bearish Marubozu candle.

Is Marubozu bearish or bullish?

1. As is apparent from the term ‘bearish’, this Marubozu pattern indicates extreme bearishness in the trading market. In this pattern, the high price of an asset or a stock is equal to its opening prices, whereas the low price is equivalent to the closing price. 2.

What happens after Marubozu candle?

After two long red candles, the bearish Marubozu close pattern occurs, which signals that the bears are still a dominant force. Ultimately, the price action continues to move lower as the market was very bearish during this period of time.