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Candlestick pattern plays an important role in understanding the market dynamics and making informed trading decisions. Understanding candlestick patterns helps you increase your trading accuracy and help you make more profits. In this article, I am going to explain to you one of the most popular candlestick patterns i.e Marubozu and how you can trade with this candlestick pattern to place high-accuracy trades.
About Marubozu Candlestick Pattern on Olymp Trade
The Marubozu pattern is a single candlestick pattern that represents the complete domination of either buyer or seller. This candle is represented by a clear body with no shadow extending from the top or bottom of the candle. The absence of shadow signals that the opening price is equal to the high or low of the candle. There are basically two types of the Marubozu Candlestick Pattern i.e. White Marubozu and Black Marubozu.
Understanding White Marubozu
White Marubozu or you can call it Bullish Marubozu displays a buyers’ dominance. This pattern suggests a very strong buyer domination, which means that the price is being controlled by the buyers. You can easily spot a white Marubozu when the candle has no upper shadow and a non-existent lower shadow.
Now, talking about How you can trade with White Marubozu Candle?
Trend Continuation: Suppose, you see a White Marubozu candlestick pattern after a strong bullish trend. It signals that the market is very heavily dominated by buyers and represents a strong bullish trend so here, you can place multiple buy trades or continue with your buy trade if you placed previously.
Trend Reversal: Suppose, you see a continuous bearish trend and suddenly a bullish Marubozu appears. It signals that the traders in the market have suddenly become optimistic and buyers are ready to dominate the market.
Understanding Black Marubozu?
Similarly, Black Marubozu or you can call it Bearish Marubozu displays a sellers’ dominance. This pattern suggests a very strong seller domination, which means that the price is being controlled by the sellers. You can easily spot a white Marubozu when the candle is red and has no upper shadow and a non-existent lower shadow.
Now, coming to How to Trade with Marubozu Candle?
Trend Continuation: Suppose, you see a Black Marubozu candlestick pattern after a strong bearish trend. It signals that the market is very heavily dominated by sellers and represents a strong bearish trend so, you can place multiple sell trades here or continue with your sell trade if you placed previously.
Trend Reversal: Suppose, you see a continuous bullish trend and suddenly a black Marubozu appears. It reflects strong selling pressure throughout the session and sellers are ready to dominate the market.
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