Various sorts of technical charts will be experienced during your online trading adventure. These charts assist in the identification of certain trading types such as bullish, bearish, uptrend, downturn, consolidation & much more. Marubozu is one of the key patterns in technical charts.
There are two types of Marubozu : Bearish Marubozu and Bullish Marubozu. Let’s discuss this candle with its types in detail.
Table of Contents
What is the Marubozu Candlestick Pattern?
The Marubozu pattern is made with an one candle and originates from the Japanese word “Marubozu,” which simply means “bald.” The ideal Marubozu, as per traders, is a candle with no shadows — upper or lower, contrasting many typical candlestick patterns.
This candlestick pattern has a real body and is divided into two types: bullish Marubozu and bearish Marubozu. Based on their presence on the trading chart, these candlestick patterns clearly imply a trend reversal or extension.
Bearish Marubozu
The bearish Marubozu pattern suggests that the stock market is extremely bearish. The maximum price of an asset or share is the same as the opening price in this form, while the low price is the same as the closing price. The bearish Marubozu indicates that the sellers have full command of the market.
Market players are ready to sell their shares or commodities at any price point during the session due to the high level of panic selling. As a result, the share or asset’s value closes around its low level for that day.
On the downside, the presence of the bearish Marubozu signals the maintenance of a clear trend. If the candlestick emerges in an upswing, nevertheless, it denotes a trend turnaround, signalling a shift in market mood.
Note:
Traders believe that the sudden shift in investor confidence will lead to a rush of bearishness, which they believe will last for a few more trading days. Traders should be on the watch for selling chances when the Marubozu bearish trend has started.
However, After Bearish now let’s take a look at bullish marubozu:
Bullish Marubozu
The lack of upper and lower shades in a bullish Marubozu suggests that the low price is the same as the opening price, while the high price is the same as the low price. It implies that traders have boosted their buying interest in a specific stock to the point where they are willing to acquire the item regardless of its price level throughout the day.
As a result, the stock’s price closes near the session’s high level. The presence of these candles in an upward trend generally suggests that the trend will continue.
They indicate a trend turnaround when they appear in a downturn. This indicates a shift in investor confidence, suggesting that the share or commodity being traded is now bullish.
Note:
Traders anticipate a bullish spike as a result of the significant shift in mood, which they believe to last for a few trading days. After the bullish Marubozu, investors should seek more buying chances.
Key Point
Due to their unusual bright colours, bald shape, and lack of shades, Marubozu are often the most visible candles on trading charts.
The colour of the candlesticks on the trading chart indicates whether buyers or sellers have full command of the trade. The trading style largely depends on the Marubozu variety.
Regardless of whether the Marubozu is bearish or bullish, you must wait for another confirmation candle before entering a trade.
Conclusion
Nevertheless, it is quite unusual for traders to spot the complete Marubozu pattern in a live market, which is why they often overlook slight price changes (less than 0.01%) among equity beginning and closing prices, as well as the high/low price.
This is all from our side regarding marubozu. Let us know your views in the comment section.
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FAQ
Bearish marubozu meaning?
The bearish Marubozu pattern suggests that the stock market is extremely bearish. The maximum price of an asset or share is the same as the opening price in this form, while the low price is the same as the closing price.
Bearish Marubozu candlestick pattern?
The bearish Marubozu pattern suggests that the stock market is extremely bearish. The maximum price of an asset or share is the same as the opening price in this form, while the low price is the same as the closing price.
Marubozu candle types?
There are two types of Marubozu candles : Bearish & Bullish Marubozu.
What does Marubozu mean?
Japanese word “Marubozu,” simply means “bald.”
Marubozu meaning in Hindi
मारुबोज़ू पैटर्न एक मोमबत्ती से बना है और जापानी शब्द मारुबोज़ू से उत्पन्न हुआ है, जिसका अर्थ है गंजा। व्यापारियों के अनुसार आदर्श मारुबोज़ू, बिना किसी छाया वाली मोमबत्ती है - ऊपरी या निचला, कई विशिष्ट कैंडलस्टिक पैटर्न के विपरीत।
