Let’s continue our candlestick Course read the previous article before trading this.
What is the Marubozu candlestick?
Marubozu is a Japanese candlestick pattern, consisting of a single candle. Marubozu is a Japanese word that holds the meaning “Bald”. Also, Marubozu has no upper and lower wicks which indicates that the instrument is traded heavily in either direction. There are 2 types of Marubozu:
- Bullish Marubozu :
Bullish Marubozu indicates that buyers are more interested in buying and the price immediately spikes. Here Open is equal to Low and close is equal to High. Usually, Bullish Marubozu appears in an uptrend which indicates that the trend is most likely to continue while appearing in a downtrend implies a possible trend reversal.
- Bearish Marubozu :
Bearish Marubozu represents traders are selling aggressively which results in a spike down in price. The candle has its Open is equal to High and Close is equal to Low. It usually appears in a downtrend which indicates a continuation of the trend, while appearing in an uptrend implies possible trend reversal.
Let’s have a Real Example of Marubozu
You can see after a Bullish Marubozu Price moves higher and higher about 35%.
Check this a massive drop of 50% after Bearish Marubozu.
Note: Always Trade candlesticks patterns wisely with proper risk management else your trading funds will always at high risk.