A Marubozu Candlestick: What Is It?

 

First of all.

Translated from Japanese, marubozu means "bald" or "shaved." When referring to candlesticks, a marubozu is one that has neither upper nor lower shadows. Marubozu candlesticks are difficult to notice because of their enormous, lengthy bodies and generally little to no shadow. A vigorous movement, either upward or downhill, is denoted by a strong body. The formation of a bullish (green/white) Marubozu signifies a constant gain in price from the open to the close, along with an attempt to drive it higher.

What pattern does the Marubozu candlestick show?

With strong momentum in one direction and typically little resistance from the other side, the Marubozu candlestick pattern is a single-candlestick structure that indicates market mood and typically ends the session at either the session's high or low.

 

Marubozu can be divided into two categories: bearish and bullish.

 

Here are a few trading tips to remember:

 

1.     1. With conviction, buy and sell.

2.     2. Respect traditions, but make sure you know how much of each.

3.     3. Examine past patterns.

Out of the three rules, only rule 3 is followed by the Marubozu candlestick pattern. Look for a previous trend.

How Can I Recognize the Candlestick Pattern of Marubozu?

 

Optimistic Marubozu: Close = High, Open = Low

A robust bullish According to Marubozu, there is strong purchasing demand throughout the day from traders who are willing to purchase at any price, which causes the stock to close.

The emphasis of Marubozu day trading is that the stock is now positive and that the emotion has changed, in contrast to the prior trend. Following this abrupt shift in attitude, there is expected to be additional upward movement, and this positive trend is expected to continue throughout the upcoming trading sessions.

 

It is advisable for investors to contemplate purchasing when a robust positive Marubozu is noted. The purchase price and Marubozu's closing price ought to be very close.

 

Marubozu, a bearish indicator: "Open equals high, and close equals low."

The idea behind Marubozu day trading is that the stock is currently in a bear market and that the behavior has changed, independent of the prior pattern.

Investors ought to search for chances to short.

Using the Marubozu Candlestick Pattern: An Illustration

Justification:

 The Marubozu white candle is a type of candlestick that, whether it is open or closed, has no shadow projecting from its body. Marubozu translates to "shaved head" or "close-cropped" in Japanese. It could be referred to as a bold or shaven head candle in other sources. Here, we can see that there is significant buying activity in TCS as seen by the creation of a bullish Marubozu at ₹1820. This shows that the stock closed close to its peak because traders were likely to purchase at any time during the day. The expectation is that the significant upward momentum will hold for the ensuing sessions.