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Marubozu

Marubozu means “close-cropped” Typically, the marubozu is a long candle that implies the day’s

trading range has been large. A marubozu candle lacks either an upper or lower shadow. On rare

occasions it can lack both a upper or lower shadow. When a full marubozu occurs, or one that is very

close to full, it is very well worth noting. If it is a white candle, then it signals extreme conviction

among buyers. Conversely, if it is a dark candle, then it indicates sellers were eager to flee. AS always,

you should pay careful attention to the nex day’s trading to see if there is follow through. A full or

nearly full marubozu implies that there is strong buying or selling interest depending on the color. If

there is follow through early the next day, the stock is likely to trend in that same direction for the

next few sessions. That awareness can be important for the trader.

 
 

BeatPoorness

2023

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