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 Opening 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 Opening 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. A short upper shadow exists but there is no lower shadow.
In Japanese, Marubozu means “bald head” or “shaved head”. White Opening Marubozu is similar to the Long White candlestick and should be interpreted similarly. The candlestick represents very strong bullishness during the trading period.
Joyful Dividends Explains:
The White Opening Marubozu tells us that buyers in the market were driving prices from the first trade to the last trade. The day opens at its low and prices keep climbing throughout the day without looking back, eventually culminating in a long white day with no lower shadow. However, the day does not close at its highest point, resulting in a short upper shadow.
White Opening Marubozu generally reflects very strong bullishness in the market. However, its position in the broader technical picture and price pattern is important.
As Part of Long Uptrend:
If the White Opening Marubozu happens as part of a long uptrend, it may mean that there is excessive bullishness in the market. Prices may be at dangerously high levels after a continued period of optimism. In this scenario, the White Opening Marubozu may be part of a bearish reversal pattern such as the Dark Cloud Cover.
As Part of Extended Price Decline:
On the other hand, if the White Opening 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.