Marubozu Candle: Definition, Functions, How to Use It!

Marubozo or Marubozu candles are patterns or patterns that are inside stock chart or Cryptos. This type is included in candle patterns.

In trading you will definitely learn a lot of things patterns and colors that show trends trading at the moment.

Pattern will show like bullish, bearish, uptown, and so on which is the benchmark in doing trading including one of these Marubozu candles.

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Marubozu candle definition

definitions and examples of marubozu candles — Definition of Marubozu Candle (source: Zerodha)

Marubozu candle quoted from The Investing ID in the chart shows the price of the security is not trading outside the range of opening and closing prices.

Taken from the Japanese word Marubozu which means bald, the Marubozu pattern candles formed with a single candle which is usually without a shadow.

According to traders, the perfect Marubozu candle is one that has no shadow either the top or the bottom, unlike most pattern candlesticks other.

Functions of the Marubozu Candle in Crypto

marubozu candle bullish and bearish colors — Marubozu Candle Color Indicator (source: The Investing id)

The function of this Marubozu candle is to show an increasing value (bullish) and down (bearish) stocks in a chart.

bullish and bearish will show an indication of who is in control of the stock price.

bullish usually indicates that price control is held by traders buyer. Whereas bearish indicates that control of the price is with the trader until the very end.

Pattern bullish usually marked in green or white. While pattern bearish will be colored red or black.

If the Marubozu candle is green or white it will indicate that the open price is equal to the low of a stock. The value of the closing price is equal to the highest value price.

While the red or black color will be the opposite of the previous color. The value of the opening price will be equal to the highest value, while the closing price will be the lowest value.

Also Read: How to Read Candlestick Patterns, Beginner Traders Read This!

How to Use the Marubozu Candle for Trading

take advantage of bullish and bearish marubozu candles to read trends — Using the Marbozu Candle to Read Trends (source: The Investing Id)

As an investor, you must use this Marubozu candle accordingly trading.

This will help you later trading to Marubozu bullish or whatever bearish.

Marubozu Candle in Bullish Trading

Marubozu candles Bullish indicates increased buyer interest in a particular asset among traders traders.

You can take advantage of this to see in the current uptrend and indicate trend continuation from stocks the.

However, when they appear in a downtrend, it implies a reversal (reverse) trend. This indicates a change in market sentiment towards uptrend.

With a sharp change in sentiment, as traders you can use to estimate the probability of buying after a bullish spike.

Also Read: Understanding Bullish Divergence in the Crypto World

Marubozu Candle in Bearish Trading

Marubozu bearish candles this will indicate an extreme decline in the trading market.

Because bearish denotes complete control of the sellers in the market, high levels of selling pressure and makes market participants willing to sell shares or assets at any given price point.

This causes the stock or asset price to close near its lowest point in a particular session and occur downtrend.

At this time, you as traders could be on the lookout for selling opportunities after a bearish Marubozu.