Community Forex Questions
What is Marubozu candlestick pattern?
The Marubozu pattern is made with a single candle and is derived from the Japanese term "Marubozu," which means "bald" in English. Unlike most other candlestick patterns, traders believe that the ideal Marubozu is a candle with no upper or lower shadows. The bullish Marubozu candle and the bearish Marubozu candle are the two main types of this candlestick pattern. It usually has what is known as a "genuine body." Depending on how they appear on the trading chart, these candlestick patterns strongly suggest either a continuation or reversal of a trend.
Use of Bullish and Bearish Marubozu candlestick patterns in trading
The color of the candlesticks as they appear on the trading chart indicates whether buyers or sellers have complete control of the market. The type of Marubozu candle also has an effect on the trading technique. However, whether the Marubozu is bullish or bearish, you must wait for a second confirmation candle before entering a trade.
Use of Bullish and Bearish Marubozu candlestick patterns in trading
The color of the candlesticks as they appear on the trading chart indicates whether buyers or sellers have complete control of the market. The type of Marubozu candle also has an effect on the trading technique. However, whether the Marubozu is bullish or bearish, you must wait for a second confirmation candle before entering a trade.
The Marubozu candlestick pattern is a key indicator in technical analysis, signifying strong momentum in the market. It features a candlestick with no shadows (wicks) on either end, indicating that the opening and closing prices are the highest and lowest points of the session, respectively. There are two types of Marubozu patterns: the bullish Marubozu, where the candlestick is solid (usually white or green) and indicates a strong uptrend, and the bearish Marubozu, where the candlestick is hollow (usually black or red) and signifies a strong downtrend. The absence of wicks suggests that buyers or sellers controlled the price action throughout the entire session, making the Marubozu a powerful signal of market sentiment and potential trend continuation.
Oct 11, 2022 15:54