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Marubozu – Japanese Candlestick

The black or white Marubozu candlesticks are long white or black candlestick that have no shadow on both ends. It is a very powerful Japanese candlestick pattern which it indicates the reversal or continuation of the trend depending on the setting during which it appeared. This candlestick is usually part of most trading patterns such as the Three White Soldiers and the Three Black Crows, or by itself as a Bullish and Bearish Engulfing Patterns.

Marubozu | FXLORDS

The high and low ends of the Marubozo represent the opening or closing price of the candlestick, and they are the highest price and the lowest price during that period. The white Marubozu candlestick is formed when the opening price is equal to the lowest price during a time period or close to it, and the closing price is equal to the highest price of the candlestick, which indicates that the buyers have taken control of the price movement from the beginning of the time period until the end. A Marubozu black candlestick is formed when the opening price is equal to the highest price during a time period or close to it, and the closing price is equal to the lowest price of the candlestick, which indicates that the sellers had taken control of the price movement from the beginning of the time period until the end of the same time period of the candlestick

While it is an excellent trading signal on its own, often the context in which the Marubozu appeared is more important than the candlestick itself, for example, near support and resistance levels. A good way to interpret this candlestick is as follows:

  • If a White Marubozu occurs within an uptrend, a continuation upwards is likely.
  • If a White Marubozu occurs at the end of a downtrend, a reversal upwards is likely.
  • If a Black Marubozu occurs within a downtrend, a continuation downwards is likely.
  • If a Black Marubozu occurs at the end of an uptrend, a reversal downwards is likely.

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