What is Marubozu in Forex Trading?

Table of Contents

It is long body single Japanese candlestick used in technical analysis of stock, commodity or security to indicate that it has traded powerfully in one trend throughout the session. Marubozu is Japanese word which means shaved head or bald head, reflected in candle shape, because it has no upper or lower wick. Marubozu candle can be a bullish as well as bearish, due to its long body and no upper and lower shadow, it is easy to spot in price chart.

The bullish Marubozu has long green or white candle that indicate that buyers fully controlled the price of stock from opening to closing. While a bearish Marubozu has long red or black candle which indicate that sellers controlled the stock price from its opening to its closing. Both bullish and bearish Marubozu can form in any price chart.

The traders and investors closely watch Marubozu candle stick because it indicate market trend continuation or reversal. If green or white Marubozu occur during an uptrend, it indicate trend continuation, while if it occur in downtrend, it indicate possibility of reversal. If black or red Marubozu occur in down trend, it indicate downtrend continuation while if it occur in uptrend, then there is chance of market reversal. The Marubozu candle stick can be more significant if used in conjunction with other technical indicators.

Share with your friends...

Facebook
LinkedIn
Email
X
WhatsApp
Pinterest
Print
Telegram