The Marubozu candlestick pattern is a type of candlestick charting formation that indicates a security's price did not trade beyond the range of the opening and closing price.
It is a candlestick sample that lacks a shadow. The name Marubozu comes from the Japanese word for "close-cropped", indicating a candle with no shadow. The defining characteristic of the Marubozu.
on a chart is the absence of upper or lower shadows, meaning the chart does not extend beyond the opening day price range. On an up day, the opening price is equal to the day's low, and the closing price is equal to the day's high.
On days that the inventory has gained, it'sfar indicative of a bull market, and on days that it has lost, it's far indicative of a endure market. Candlestick charting has been famous for the reason that days of Japanese rice traders and rice traders.
They mentioned the huge a part of the candlestick because the actual body, and they'd use it to decide whether or not the remaining rate had risen above or fallen below the opening price. When a Marubozu type of candle is found i an uptrend, it is used to
downtrend because it shows that the Sentiment has modified and that the bulls are probably to hold pushing the asset higher. On the other hand, a bearish Marubozu found in a downtrend (open equals high, low equals close) can signal further selling pressure, especially if found at the top of an uptrend.
