A Marubozo candlestick charting configuration signifies that the price of an asset did not move outside of the range of its opening and closing prices. It’s a candlestick design that does not have a shadow.
On a chart, the Marubozo is identified by the lack of upper or lower shadows. It indicates that the chart stays within the opening-day price range. When the day opens at the same price as the low and closes at the same price as the high, it is said to be an up day. A bull market is indicated by days when the stock has gained. While a bear market is indicated by days when it has lost.
When the bullish (white or green) Marubozo candle opens, equals low, and the high equals close. It is discovered near the conclusion of a downtrend. it can indicate a reversal since it indicates that the market is now more optimistic and that the asset will probably continue to rise.
How to Identify a Marubozo Candlestick Pattern
To identify a Marubozo candlestick, look out for the following
- Look for a candlestick with a long body
- Upper or lower shadows should not exist
- The candle can choose to appear anywhere on the chart and can be either black and red or white and green.
- An extremely bullish white/green Marubozu rises upward.
- A very bearish black/red Marubozu moves downward.
- The price move is stronger the longer the candle is.
