What is the meaning of a candlestick pattern with the open and close at the top and bottom?

Things You Need to Know...


A candlestick pattern in which the open and close are at the top and bottom, respectively, is called a "marubozu" pattern. 

This pattern indicates that the security's entire trading range for the period is between the open and the close, with little or no difference between the high and low. It is a strong bullish signal, meaning that the price has opened at the low and closed at the high, which means that buyers controlled the trading action for the entire period.

A white marubozu is a bullish pattern where the open is at the low and the close is at the high, indicating strong buying pressure, and a Black marubozu is bearish, where the open is at the high and close is at the low, indicating strong selling pressure. 

These patterns reflect a trend with conviction and can be found in a Bullish trend when prices are increasing and in a bearish trend when prices are decreasing. It's worth noting that Marubozu candlestick patterns are considered relatively rare in stock market charts and require confirmation with other indicators or patterns to confirm the strength of the trend.

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