MARUBOZU CANDLE STICK PATTERN

 1.1) The Marubozu -

The marubozu or marubuzo means "Bald" in Japanese. In the type of candle stick pattern marubozu is the first pattern .Marubozu has a unique shape where is no upper and lower shadow(therefore appearing like a bald ).The marubozu has only real body shown in below.

normal candlestick















There are two types of marubozu pattern -i) Bullish Marubozu
                                                                    ii)Bearish Marubozu


i) Bullish Marubozu-

 A bullish marubozu indicates that there is so much buying interest in the stock that the market participants were willing to buy the stock at every price point during the day, so much so that the stock closed near its high point for the day.
Bullish Marubozu indicates extreme bullishness. In the bullish marubozu the Open = Low and Close =  High
















In the chart above (ACC Limited), the encircled candle is a bullish marubuzo. Notice the bullish marubuzo candle does not have a visible upper and a lower shadow. The OHLC data for the candle is: Open = 971.8, High = 1030.2, Low = 970.1, Close = 1028.4.The risk taker would buy the stock on the same day as the marubozu is being formed. However the trader needs to validate the occurrence of a marubozu.

ii)Bearish Marubozu-

Bearish Marubuzo indicates extreme bearishness. Here the open is equal to the high and close the is equal to low. Open = High, and Close = Low
A bearish marubuzo indicates that there is so much selling pressure in the stock that the market participants actually sold at every price point during the day, so much so that the stock closed near its low point of the day. 




















Location: India

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