Wednesday, February 23, 2011

Marubozu Candlestick Pattern

Marubozu Candlestick: It indicates that the stock has traded in one direction throughout the trading session and closed at the day's high or low price.This candlestick pattern gives strong bull and bear signal.
  • Bullish Marubozu Candlestick:
    • It is formed when open - low and close - high are equal with huge volumes.
    • The buyers control the price of stock from opening to closing session.

  • Bearish Marubozu Candlestick:
    • It is formed when close - low and open - high are equal with huge volumes.
    • The sellers control the price of stock from opening to closing session.

Above charts shows that whenever Marubozu candlestick is formed ( Bullish or bearish) there is sharp rise or fall in the price. Hence it is a strong candlestick pattern and can be use in technical analysis.








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