Forex Candlestick Chart Patterns – Marubozu
Previous candlestick series articles have been introduced candlestick explanations and candlestick types with large small body candles. In short, the amount of body candle gives the number of strengths buyer or seller who struggled in the candle period. Large body provides buyer or seller information has great strength and can be aggressive. While the small body provides information power buyer or seller is not large and tend to sideways.
We will discuss the Marubozu candlestick type in this article. Marubozu often appears without shadow or has a short shadow. Candle marubozu bullish is often called white marubozu while marubozu bearish is called black marubozu.
White Marubozu is formed when the open price is equal to the low price and the high price equals the close price. This candle can indicate the buyer holds full control from the beginning of trading opening until closing.
Black Marubozu is formed when the open price equals the high price and the low price is equal to the close price. The appearance of this candle indicates the seller holds full control from the beginning of trading opening until closing.
But there is also a modification that marubozu not always have no shadow. Namely closing Marubozu and opening Marubozu. Still, the condition of shadow should be short.
Closing Marubozu is a Marubozu candle that has no shadow at closing level. Closing Marubozu gives a strong signal indication depends on the direction (White or Black).
If Marubozu candle is bullish and does not have an upper shadow, we call White Closing Marubozu. Usually the high level is the same as the close level. Price moves down after opening to print low but then price move up during period until close when reach high.
While the bearish Marubozu candle does not have a lower shadow, we call Black Closing Marubozu. Low level is equal to close level. The price moves upwards after opening to score high but then the price moves down during the period until close when it reaches low.
Opening Marubozu is a Marubozu candle that does not have shadow at opening level. Opening Marubozu also gives a strong signal indication but not as strong as Closing Marubozu.
If Marubozu candle is bullish and does not have a lower shadow, we call White Opening Marubozu. Usually the low level is the same as the open level. Direct price moves up after opening, where open equal to low, to print high but then price pull back slightly for close period.
While the bearish Marubozu candle does not have an upper shadow, we call Black Opening Marubozu. The high level is the same as the open level. Direct price moves down after opening, where open equals high, to print high but then price pull back slightly for close period.