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Understanding candlestick patterns is one of the most important skills that every trader must learn. These pattern offers valuable insights about the market and even increase your trading accuracy. In this article, I am going to cover one of the most powerful candlestick patterns i.e. Marubozu, which signifies a strong bullish or bearish domination.
What is Marubozu Candlestick Pattern?
Marubozu Candlestick Pattern is one of the most powerful candlestick patterns that display bull or bear domination. This candlestick pattern is characterized with a long body and almost zero shadow. The appearance of this pattern represents a period of intense buying or selling pressure, indicating a strong bullish or bearish trend.
There are basically two types of Marubozu Candlestick Patterns:
a) Bullish Marubozu: A Bullish Marubozu displays a complete buyer’s domination. You can easily spot this pattern with a complete big white body and zero shadow.
b) Bearish Marubozu: A Bearish Marubozu is just the opposite of a Bullish Marubozu. The appearance of Bearish Marubozu represents a complete seller’s domination. You can easily spot this pattern with a complete big blue body and zero shadow.
Practical Example: Spot Marubozu Candlestick Pattern on Expert Option
Spotting a Marubozu candlestick Pattern is very easy. You just need to look for a candle with almost zero shadow and a big body. A White Marubozu signals a strong bullish trend meanwhile, A blue Marubozu signals a strong bearish trend.
How to use Marubozu Candlestick Pattern on Expert Option
There are multiple ways of using the Marubozu Candlestick Pattern. however, the traditional way of using this pattern is:
Finding upcoming reversals: You can easily spot Marubozu Candlestick Pattern on Expert Option. When you see a strong blue Marubozu after a good uptrend it signals an upcoming bearish reversal. vice versa, When you see a strong white Marubozu after a good downtrend it signals an upcoming bullish reversal.
Continuation of Trend: When you see a strong blue Marubozu after a good downtrend it signals a continuation of a bearish trend. vice versa When you see a strong white Marubozu after a good uptrend it signals a continuation of a bullish trend.