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    Marubozu: Speaker: Manish Patel

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    King Vaibhav
    The Marubozu candlestick pattern indicates strong bullish or bearish sentiment. It has a long body with little to no wicks or shadows. A bullish Marubozu shows the asset rising without falling, while a bearish Marubozu shows the asset falling without rising. It can signal either a trend reversal or continuation. Traders watch for opportunities after a Marubozu appears based on whether it confirms or changes the prevailing trend. Higher volume adds strength to the signal.

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    Marubozu: Speaker: Manish Patel

    Uploaded by

    King Vaibhav
    478 views13 pages
    The Marubozu candlestick pattern indicates strong bullish or bearish sentiment. It has a long body with little to no wicks or shadows. A bullish Marubozu shows the asset rising without falling, while a bearish Marubozu shows the asset falling without rising. It can signal either a trend reversal or continuation. Traders watch for opportunities after a Marubozu appears based on whether it confirms or changes the prevailing trend. Higher volume adds strength to the signal.

    Original Title

    G. 22.02.2022 - Marubozu

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    The Marubozu candlestick pattern indicates strong bullish or bearish sentiment. It has a long body with little to no wicks or shadows. A bullish Marubozu shows the asset rising without falling, while a bearish Marubozu shows the asset falling without rising. It can signal either a trend reversal or continuation. Traders watch for opportunities after a Marubozu appears based on whether it confirms or changes the prevailing trend. Higher volume adds strength to the signal.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    478 views13 pages

    Marubozu: Speaker: Manish Patel

    Uploaded by

    King Vaibhav
    The Marubozu candlestick pattern indicates strong bullish or bearish sentiment. It has a long body with little to no wicks or shadows. A bullish Marubozu shows the asset rising without falling, while a bearish Marubozu shows the asset falling without rising. It can signal either a trend reversal or continuation. Traders watch for opportunities after a Marubozu appears based on whether it confirms or changes the prevailing trend. Higher volume adds strength to the signal.

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    of 13

    Price Action Trading

    Marubozu
    (Know Your Candlesticks)

    Speaker: Manish Patel


    This will be helpful to classify the Candlestick Patterns

    [Complexity] + [Type] + [Pattern]

    a. Simple + Reversal / Continuation + Pattern (Marubozu)

    ● Reversal signals are often stronger at significant price


    levels (support, resistance, highs and lows).

    ● Higher Time Frame is more reliable and indicating much


    higher possibilities of happening.
    Marubozu Candlestick – meaning and interpretation

    The Marubozu pattern is formed with a single, candle. According to traders, the
    perfect Marubozu is a candle that has no shadows – upper or lower, unlike most
    other candlestick patterns.

    This candlestick pattern typically has, what is considered as a ‘real body’ and is
    categorised into two types – the Bullish Marubozu Candle and the Bearish
    Marubozu candle. These candlestick patterns strongly indicate a reversal or
    continuation of a trend, depending on their appearance on the trading chart.
    MARUBOZU CANDLE

    ● Marubozu is a Japanese word for Power/Rule.


    ● These are extremely powerful candles.
    ● They have a long body with small or no shadow.
    ● When a Green Marubozu candle is formed, it
    means the assets opened at a certain level and
    kept rising without falling down.
    ● Similarly, a Red Marubozu is formed when the
    price opens at a certain point and keeps falling.
    ● Can be trend-reversal or trend-continuation
    candle.
    ● A Marubozu with higher volume is more
    powerful.
    Trading with Bullish Marubozu

    There are things you need to know about trading with Bullish Marubozu
    candles. They are as under:

    1. In a bullish Marubozu, the absence of upper and lower shadows indicates


    that the low price is equal to the opening price, whereas the high price is
    equivalent to the close price.

    2. Bullish Marubozu candles appearing in an uptrend strongly indicate the


    continuation of a trend. However, when they appear in a downtrend, it
    implies a trend reversal. Such a situation signifies a change in the market’s
    sentiment, indicating that the stock or asset traded is now bullish.

    3. With the sharp sentiment change, traders expect to see a bullish surge,
    anticipating it to continue over a few upcoming trading sessions. In this case,
    traders should look for new buying opportunities after the bullish Marubozu
    Trading with Bearish Marubozu

    1. As is apparent from the term ‘bearish’, this Marubozu pattern indicates


    extreme bearishness in the trading market. In this pattern, the high price of
    an asset is equal to its opening prices, whereas the low price is equivalent to
    the closing price.

    2. The bearish Marubozu candle signifies the complete control of the sellers
    on the market. Such is the level of the selling pressure that market
    participants are willing to sell their assets at every possible price point in the
    session. This causes the stock or asset’s price to close near its low point in
    that particular session.

    3. The appearance of the bearish Marubozu in a downtrend indicates the


    continuation of a strong trend. However, if the candlestick appears in an
    uptrend, it indicates a trend reversal, implying a change in the market’s
    sentiment.

    4. Traders, essentially expect that the sharp change in the market


    sentiments will result in a surge of bearishness, which they expect will
    continue for a few upcoming trading sessions. In such a situation, traders
    should be on the lookout for selling opportunities after the bearish
    Marubozu.
    Long Opening Long Close
    H H H
    H=C O=H O H=C
    C O

    Body > 95%


    Wick < 5%
    If, wicks or
    shadow
    presents

    O C=L
    O=L C=L O/L C/L
    L

    More Powerful Little Less Powerful Pattern


    Pattern
    H H
    C O

    O C
    L L

    Sellers Buyer
    available available
    SL
    SL
    SL
    If, trade goes
    against your
    analysis

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