The shape of a
Marubozu Candle
Marubozu is
formed with the characteristics of a full-body without any shadow at the top
and bottom, but sometimes there is also a shadow that forms very little on the Marubozu
candle. This candle indicates a very big momentum. If this candle is green then
the bullish momentum that is happening is very strong. Conversely the bearish Marubozu
indicates a very strong bearish momentum.
Marubozu candle picture with full body
For bullish Marubozu
it indicates that the buyer is superior in the market at that time while the
bearish Marubozu opposite indicates the seller is in control at the time the Marubozu
candle is formed. If you see the Marubozu on the D1 timeframe, then on the same
day bullish holds market control on that day and vice versa.
Bullish
Marubozu forms the same opening price at the lowest price. So when the candle
starts to form, the trend that occurs at that time is going up without
experiencing a decline from its opening price.
Bearish
Marubozu has the highest opening price without experiencing price increases
first. When the opening price occurs the price drops immediately because the
seller has greater strength than the buyer.
What you can consider regarding the condition of the Marubozu that is
formed on the market:
·
This bullish Marubozu candle in the uptrend or
uptrend indicates that the trend will continue. For example, a bullish Marubozu
on an uptrend is rising.
·
The bearish Marubozu candle in the downtrend
trend indicates that the trend will continue down. For example, bearish Marubozu
is on a downtrend that is declining.
·
If there is a bullish Marubozu in the downtrend,
the indicator will be a reversal of the trend or a reversal in the downtrend to
an uptrend.
·
If there is a bearish Marubozu on the uptrend
then a reversal from uptrend will become a downtrend.
Because
Marubozu is only formed by one candle, d nature uses the Marubozu candle
signal, of course, you should use the help of other technical indicators such
as RSI, Moving Average and the next confirmation candle. You must pay attention
to the current trend and where the Marubozu position is formed
Example of a bullish Marubozu a candle on the chart
Chart with a bullish candle Marubozu
You can see
the EUR / USD pair chart forming a bullish Marubozu candle in the middle of the
uptrend. As is the case, Marubozu will potentially continue the trend if it
occurs on certain trends. At the uptrend, a bullish Marubozu candle can
potentially continue the trend. But you have to be careful about making a decision if you look at the RSI technical indicator the value has begun to
overbought at the number 70.
Example of a bearish Marubozu a candle on the chart
Chart with a bullish candle Marubozu
On the chart
above the EUR / USD pair formed a bearish Marubozu at the end of the uptrend.
Bearish Marubozu formed at the end of the uptrend will potentially change the
price trend into a downtrend. You can confirm by looking at one or two candles
after the bearish Marubozu is formed. With the help of the RSI technical
indicator, the value has begun to be below 50. This will potentially continue
the downtrend.
·
The overbought indicator value for the RSl is
70.
·
The oversold indicator value for the RSl is 30.
·
If the indicator value below 50 will tend to
continue the trend that is bearish.
·
If the indicator value above 50 will trend to
continue a trend which is bullish.
