Hi there!
I was looking to know more about the Marubozu candlestick Pattern. Any kind of info will be appreciated!
Can someone please explain the Marubozu candlestick Pattern ?
Re: Can someone please explain the Marubozu candlestick Pattern ?
Marubozu candlestick Pattern is mainly used in forex trading and technical analysis is a single candlestick pattern. It is a unique pattern because it only shows the opening and the closing price of the candle without the high or the low meaning the wicks are left out only the body of the candlestick is shown. This can help predict the future price movements as well as the strength of the current trend of the price.
There are two types of Marubozu Candlestick Pattern and depend on the opening and the closing prices.
Bullish Marubozu
Bearish Marubozu
Bullish Marubozu
Bullish Marubozu Candlestick pattern has a low opening price and a high closing price meaning the trend will be in an upward direction moving at a consistent speed and did not face any significant pullbacks. This shows that the buyers are in full control and keeping the momentum in an upward direction indicating that the price trend in the market is bullish and the buyers are running the market.
Bearish Marubozu
Bearish Marubozu Candlestick Pattern has a high opening price and a low closing price meaning that the trend will be moving in a downward direction. This indicates that the bears are in full control of the market and the price is moving downward steadily keeping the trend in a bearish direction. A full body without the wick indicates a strong downward momentum. This indicates that the prices are very likely to continue moving in a downward direction.
Bullish Marubozu
Bearish Marubozu
Bullish Marubozu
Bullish Marubozu Candlestick pattern has a low opening price and a high closing price meaning the trend will be in an upward direction moving at a consistent speed and did not face any significant pullbacks. This shows that the buyers are in full control and keeping the momentum in an upward direction indicating that the price trend in the market is bullish and the buyers are running the market.
Bearish Marubozu Candlestick Pattern has a high opening price and a low closing price meaning that the trend will be moving in a downward direction. This indicates that the bears are in full control of the market and the price is moving downward steadily keeping the trend in a bearish direction. A full body without the wick indicates a strong downward momentum. This indicates that the prices are very likely to continue moving in a downward direction.
Re: Can someone please explain the Marubozu candlestick Pattern ?
What will be the psychology and strategy behind Marubozu candlestick patterns ?
Re: Can someone please explain the Marubozu candlestick Pattern ?
The Marubozu candle strategy is very simple and easy to understand and can help you identify strong trading opportunities. There are only two key parameters to help you identify a valid Marubozu candlestick pattern. These parameters will help you filter out the best possible Marubozu candlestick pattern from other candles as all the Marubozu candlestick patterns are not worth trading.
Key Parameters for the Marubozu Strategy
The first parameter is the length or the size of the candle and it is very crucial in identifying a valid pattern. The size of the Marubozu candlestick pattern should be larger than at least 10 or 20 previous candles as it will suggest a strong momentum in the price making the pattern more reliable.
Second parameter is the location of the candlestick pattern and it is very important as well. For example if a bullish Marubozu candlestick is formed at a place where the price is already overbought then it can be a false signal and a fake out however if the pattern is formed at any breakout point of a trendline then it will indicate that it is a valid breakout. The breakout should always align with the current trend for better results
How the Pattern Works
Let us look at an example to better understand how the pattern actually works.
Imagine a Marubozu candlestick breaking out of a range in the same direction as the previous trend as it is shown in the image below. There are many small candlesticks in the range but a strong bullish marubozu candlestick is formed at the end breaking the range which indicates that the buyers have decided the direction of the price and are in full control making the price go up higher and higher.
Key Parameters for the Marubozu Strategy
The first parameter is the length or the size of the candle and it is very crucial in identifying a valid pattern. The size of the Marubozu candlestick pattern should be larger than at least 10 or 20 previous candles as it will suggest a strong momentum in the price making the pattern more reliable.
Second parameter is the location of the candlestick pattern and it is very important as well. For example if a bullish Marubozu candlestick is formed at a place where the price is already overbought then it can be a false signal and a fake out however if the pattern is formed at any breakout point of a trendline then it will indicate that it is a valid breakout. The breakout should always align with the current trend for better results
Let us look at an example to better understand how the pattern actually works.
Imagine a Marubozu candlestick breaking out of a range in the same direction as the previous trend as it is shown in the image below. There are many small candlesticks in the range but a strong bullish marubozu candlestick is formed at the end breaking the range which indicates that the buyers have decided the direction of the price and are in full control making the price go up higher and higher.