The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

Understanding Candlesticks_3. Marubozu Candlestick in Forex

Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by yaniv, 2022-06-09 08:24:24

Understanding Candlesticks_3. Marubozu Candlestick in Forex

Understanding Candlesticks_3. Marubozu Candlestick in Forex

Lesson 3: Marubozu Candlestick in Forex

Marubozu is the exact opposite candlestick to Doji. As the Doji represents
indecision in the market, Marubozu shows total conviction about the price direction.

A bullish Marubozu opening price is also the session’s low - and the closing
price is equal to the session’s high. These candlesticks have no shadows at all,
showing that the buyers are in control for the whole of the session.

Let’s take a look at how bullish Marubozu forms. As soon as the session
started, the Bulls were in charge. They were driving the price up for the whole
session and it closed at its high.

The bearish Marubozu opening price is equal to the session’s high and the
closing price is also the session’s low. Similar to the candlestick’s bullish version,
this also has no shadows and indicates that the sellers have control over the pricing
for the whole session.

When you consider that the session has started the bears have pushed the
price lower. They drove the price down until the end of the session, where it closed
at its low.

The Marubozu candle signal has no real trading implications on its own.
However, as it clearly shows the current market sentiment, it can be helpful in
situations like breakouts, or reversals.

With bullish Marubozu, you will notice the price breaking resistance levels and
there will not be any selling triggered by the bears, thereby pushing it towards a
successful breakout.
Conversely, a bearish Marubozu at resistance could imply a complete change in
current market sentiments and could lead to further decline.


Click to View FlipBook Version