Structure and Significance of the Marubozu Candlestick
The Marubozu candlestick, compared to other types, has a different wick design or even an absent wick, which makes it quite distinctive. Its body represents the price range from the opening price to the closing, and with this type of stick, the range is typically large.
There are two basic types of Marubozu candlesticks, the Bullish Marubozu and Bearish Marubozu.
Bullish Marubozu: The Bullish Marubozu does not have an upper wick and has a short lower wick (if it exists). It is usually regarded as a reflection of strong bull strength and can be a confirmation of the continuation of an upward trend or possibly the beginning of a new bull trend.
Bearish Marubozu: The bearish Marubozu has no lower wick and a short upper wick (if any). A Bearish Marubozu indicates strong bearish pressure and can be interpreted as a warning of a coming downtrend or extension of a bear trend.
Uses of Marubozu Candlestick Analysis in Forex Trading
In this course, you will learn about Marubozu candlesticks, their history, and their many uses in identifying potential trend shifts in trading. You will learn how they can help with Trend Confirmation, how they can predict potential Reversal Indicators, what a Breakout is and also when they are combined with other analysis tools, such as the Fibonacci level or a momentum indicator like the Relative Strength Index they can provide even more confirmation of possible trend directions which can tip trades even more in your favour.
The Marubozu candlestick is a great ally to have when you are analyzing trading charts, and in this course, you learn everything you need to know about its uses. When you recognize and interpret Marubozu candlesticks, in conjunction with other technical indicators, you gain a deeper understanding of the market and improve your trading strategies, increasing your chances of success in the fast-moving Forex market.
