eBOOK/PDF
No ads? No problem! You can download our tutorials in a printable PDF format or as an EPUB file, optimized for your tablet or eReader.
White Marubozu
Mastering the White Marubozu Candlestick Pattern: A Comprehensive Guide for Traders
The White Marubozu candlestick pattern is a strong bullish signal with no shadows, indicating the price did not trade outside its opening and closing range. It signifies strong buying pressure and often indicates trend continuation. This tutorial will explore its characteristics, identification, and effective trading strategies.
A Marubozu is a candlestick charting pattern that signifies that the price of an asset did not trade outside of the starting and closing price range. There is no shadow on this candlestick pattern. In this lesson, we'll look at how the Marubozu candlestick pattern predicts a price turnaround after a bearish trend, as well as a trading strategy that uses the "Marubozu" candlestick pattern.
Name: | White Marubozu |
---|---|
Forecast: | Reversal or Continuation of a Trend |
Trend prior to the pattern: | N/A |
Opposite pattern: | Black Marubozu |
Accuracy rate: | 56% |
A Quick Overview of White Marubozu Pattern
In Japanese, marubozu means "bald head" or "shaved head." This is due to the lack of at least one shadow on such a candle, implying that the opening or closing price will be equal to one of the candle's maximum values. A Marubozu that lacks both shadows signifies that the market opened and closed at the candle's extreme levels. The white marubozu is a strange candle. White marubozu candles can emerge anywhere in a trend and, According to Bulkowski, 56% of the time, they indicate that the trend will continue.
ContinueClaim your 100 USDT Cashback Voucher
Your prize is just a few steps away. Open your account right away to earn a 100 USDT cashback voucher.
Get StartedA Marubozu is a candlestick charting pattern that indicates that an asset's price did not trade outside of its opening and closing price range. This is because such a candle does not have at least one shadow, signaling that the opening or closing price will be equal to one of the candle's maximum values.
- Marubozu is a Japanese term that means "close-cropped" and refers to a long-bodied candlestick with no shadow.
- Technical traders utilize candlestick charts to look at the opening and closing prices on a particular day.
- Depending on whether the candle is moving up or down, a candlestick with no shadows is viewed as a strong indicator of conviction by either buyers or sellers.
- The bullish Marubozu candle (closing white) can signal a reversal when it is found at the end of a downtrend because it shows that the sentiment has shifted and the bulls are likely to push the asset higher.
- In a downturn, the bearish Marubozu candle (opening white) might foreshadow increased selling pressure, especially if it appears at the peak of an uptrend.
There are no shadows on the tall white body of the white marubozu candle pattern. White marubozu candles, as one might expect, can appear anywhere in a trend and, 56 percent of the time, they indicate that the trend will continue. The pattern's psychology is one of optimism. As bullish buying demand drives the stock higher, the price opens and moves upward. By the end of the day, the price has been locked at the day's high, never dipping below the opening price or giving the bears a chance to cause trouble. But the good times may come to an end because anything could happen the next day.
Identification:- Look for a Bullish (Green or white) candle with a body taller than average and have no shadows.
When the opening white marubozu is compared to the opening black marubozu, the white candle is more powerful. White marubozu candles can appear anywhere in a trend and, 54% of the time, they indicate that the trend will continue. The beginning white marubozu, on the other hand, is more closely related to a flipped-over closing white marubozu. The colors are the same, and the shape is the same as well.
The psychology behind this pattern begins with the bulls drive price higher immediately from the start. Before the bears realize what has transpired, their purchasing pressure propels the price skyward. When the bears emerge from their slumber, they drive prices lower, leaving only a tall white candle with an upper shadow but no bottom shadow.
Identification:- Look for a Bullish (Green or white) candle with a body taller than average and have an upper shadow but no lower shadow.
The closing white marubozu is the diametrically opposed closing black marubozu. The white candle is the more powerful of the two, with a 55 percent continuance rate. When the bulls have the ball, the psychology behind the closing white marubozu pattern begins. During the day, the bears seize the initiative, and the price falls below the open, creating a lower shadow. The bulls, on the other hand, have scored more points by the conclusion of the day, and the price closes at the day's high. The next day, price could go up or down, but given the bullish fervor seen in the tall white candle, price is more likely to continue going higher and stage an upward breakout.
Identification:- Look for a Bullish (Green or white) candle with a body taller than average and have an lower shadow but no upper shadow.
Differences Between a White Marubozu & Black Marubozu
The Black Marubozu is part of the basic candle family. Because it is the 'opposite' candlestick to the White Marubozu, it has the exact opposite meaning.
Read MoreA Marubozu candle can be used as a standalone indicator. Nonetheless, it is frequently seen in conjunction with other candlesticks during a clear trend, indicating trader mentality and future price action. Establishing a trend is one of the most difficult aspects of candlestick trading. Traders utilize the Marubozu pattern in conjunction with a trend indicator, such as a moving average line, to assist offset this difficulty. This can help identify an upward or downward trend and determine whether it will continue or reverse.
Sardar Omar
I did my hardest to present you with all of the information you need on this subject in a simple and understandable manner. However, if you have any difficulties understanding this concept or have any questions, please do not hesitate to ask. I'll try my best to meet your requirements.
Disclaimer:This material is provided purely for educational purpose and is not intended to provide financial advice.