White Marubozu for Profitable Investing & Trades

basic-candlesticks

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 Marubozu, which represents extreme bullishness. If you will like to check out a series of candlesticks for to help you invest profitably, please head over to Basic Candlesticks for a full list! 

White Marubozu

white-marubozu
White Marubozu

Criteria: 

The body of this candlestick is white and longer relative to other candles on the chart. There are no upper and lower shadows on either end.

Information Conveyed: 

In Japanese, Marubozu means “bald head” or “shaved head”. The market opened and closed at the extreme levels of the candle, representing extreme bullishness.  

Joyful Dividends Explains: 

 

The White Marubozu tells us that the opening price was the low of the day, and the closing price was equal to its high. This implies that buyers were in control from the first trade to the last trade. The day opens and prices continued to advance without looking back, thus forming a long white day with no lower shadow. The day closes at its high with no upper shadow.

The candlestick is generally bullish. However, its position within the broader candlestick pattern is important in determining where prices go next.

If the White Marubozu appears in a long period of decline, it may imply a potential turning point, suggesting that prices have reached a support level.

If the candle is seen as part of a long uptrend, it may mean excessive bullishness and that prices are at dangerously high levels. On the other hand, if the White Marubozu is formed at high trading volumes in an uptrend, it may suggest a continuation of the uptrend, especially if it appears after a price gap (a shimizu). 

Feel free to check out other candlesticks or the short white candlestick to learn more!

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Disclaimer: Joyful Dividends is an independent and free website. All examples, charts, histories, tables, commentaries, or recommendations are for educational or informational purposes only. We do not receive compensation by any direct or indirect means from visitors and users of this website, and from the stocks, securities, institutions or any underwriters, brokers or dealers associated with the national or international forex, commodity and stock markets. By using Joyful Dividends, you agree that Joyful Dividends, its subsidiaries, affiliates, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential damages.

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