A Morubozu candle is a type of candlestick pattern in technical analysis, which is implemented in stock trading and forex markets. The candle has a long body without any upper or lower shadows (wicks), indicating strong buying or selling pressure.
Types of Marubozu Candles:
Bullish Marubozu (White/Green Candle)
The price opens at the low and closes at the high, sans shadows.
Strong buying momentum which points to a possibility of an uptrend.
Bearish Marubozu (Black/Red Candle)
The price opens at the high and closes at the low with no shadows.
Strong selling pressure, indicating a possibility of a downtrend.
Importance in Trading:
The Marubozu candle indicates strong sentiment in the market and possibly the continuation or reversal of a trend, depending on its position in the trend.
It is mostly used in conjunction with support & resistance levels, with other signal-reaffirming indications.
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