CANDLESTICKS

Page 7

The Marubozu:

The Marubozu candles have no shadows/ wicks attached to the closing price of their bodies. Depending on whether the candlesticks body is green or red (bullish or bearish), the high/ low is in fact the same as its open and close price.

The green/ bullish Marubozu consists of a long green body with no shadows/ wicks at the closing price (TOP). It is seen as a very bullish candle as it indicates that buyers were in control for the length of the candlesticks timeframe. It usually becomes the first part of a bullish continuation move or a bullish re- versal pattern.

The red/ bearish Marubozu on the other hand consist of a long red body with no shadows/ wicks at the closing price (BOTTOM). This is a very bearish candle as it indicates that sellers dominated price action throughout the whole candles timeframe, usually implies bearish continuation or bearish reversal. The larger the timeframe, the stronger the bullish/bearish Marubozu move. The recommended timeframes are the weekly & daily as these give a strong indication that further momentum is expected in the specific direction in which the Marubozu candle is formed.

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