What does Black marubozu mean?
A black marubozu candle has a long black body and is formed when the open equals the high and the close equals the low. A black marubozu indicates that sellers controlled the price from the opening bell to the close of the day, and is considered very bearish.
What is a closing marubozu?
Closing Black Marubozu is a candle where the close price and the low price are at the same level (no lower shadow exists). It must have a body covering at least 51 percent of the full candle height.
How do you confirm marubozu?
It is fairly easy to identify a marubozu pattern because it is a single candlestick having a real body without any kind of shadows. Typically, when bullish, they are white or green on stock charts and when bearish, they are red or black.
How do you trade bearish marubozu?
For bearish marubozu, open price equals to high price and the close price equals to low price. So, the identification mark for an ideal spinning top will be: Large actual body. There will be no shadow at either side of the candle.
What does a 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.
What happens after a 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.
What opens Marubozu?
What is Opening Marubozu? The opening Marubozu occurs when the opening price occurs at the high or low of the day. When the opening price is equal to the high of the day, it is bearish and when it is at the low of the day it is bullish Marubozu.
What is 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.
What is Marubozu pattern?
The Marubozu candlestick pattern is a single-candle bearish pattern. It is a straightforward formation that is easy to spot. Characteristics of the Marubozu pattern. There are three types of marubozu candles: A Marubozu open.
What does a bullish Marubozu mean?
What happens after a Marubozu candle?
What happens after bullish Marubozu?
In case of a bullish marubozu, the low of the stock acts as a stoploss. So after you initiate a buy trade, if the markets move in the opposite direction, you should exit the stock if price breaches the low of the marubozu.
What does the White closing marubozu Candlestick mean?
The white closing marubozu is another name for this formation. The bearish closing marubozu candlestick pattern forms when the open price is the high price and the close price is the low price of the day. It indicates the powerful bearish market marked by selling during the whole trading session.
Which is more powerful closing white or black marubozu?
Closing Black Marubozu is a candle where the close price and the low price are at the same level (no lower shadow exists). It must have a body covering at least 51 percent of the full candle height. According to Morris, Closing Black Marubozu and Closing White Marubozu are more powerful than Opening Black Marubozu and Opening White Marubozu.
When to expect a reversal in black marubozu?
If a black marubozu occurs at the end of a downtrend, a continuation is likely. If this pattern forms at the end of an uptrend, a reversal is expected. Black marubozu is a bearish pattern and has more versions in the family of marubozu patterns.
What does the term marubozu mean in Japanese?
In Japanese, the term marubozu means “close-cropped.”. It is also commonly referred to as “shaven head” or “shaven bottom.” .Typically, the candlestick Marubozu is a long candle which means that the day’s trading range has been large. You will see that the Marubozu candlestick pattern lacks either an upper or lower shadow.