Glad to have you here at Joyful Dividends! You are reading a blog series on Introduction to Candlesticks. Today, we introduce you to the White Closing Marubozu, which represents extreme bullishness. If you will like to check out a series of candlesticks to help you invest profitably, please head over to Basic Candlesticks for a full list!
White Closing Marubozu
The body of this candlestick is white and longer (representing at least 51% of total candle height) relative to other candles on the chart. Unlike the White Opening Marubozu, this candlestick has a short lower shadow but there is no upper shadow.
In Japanese, Marubozu means “bald head” or “shaved head”. White Closing Marubozu candlestick represents very strong bullishness during the trading period.
Joyful Dividends Explains:
The White Closing Marubozu implies that buyers in the market controlled price action largely from the first trade to the last trade. The day opens and prices drop slightly to form a lower shadow. Throughout the rest of the day, however, prices rally and climb continuously without looking back, eventually reaching the high of the day. The bulls are very strong for the most part of the day except at the initial opening session.
White Opening Marubozu generally reflects extreme bullishness in the market. Depending on its position in the larger technical picture, it may predict either the continuation of an uptrend or a potential turning point.
As Part of Long Uptrend:
If the White Closing Marubozu happens as part of a long uptrend, it may be similar to the White Opening Marubozu in that prices may be dangerously high. However, it is a much stronger signal of uptrend continuation as the market has maintained its strength from start to finish throughout the trading period. As there is no upper shadow, there is no price pullback at the end of the session.
As Part of Extended Price Decline:
If the White Closing Marubozu occurs during a period of extended price decline, it may mean a potential turning point. Prices may have reached a strong support level such as the Bullish Belt Hold Pattern.