Marubozu (jp: まるぼうず, 丸坊主, ''close-cropped head, bald hill'') is the name of a
Japanese candlesticks formation used in
technical analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the sam ...
to indicate a
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
has
traded
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct excha ...
strongly in one direction throughout the session and closed at its high or low price of the day. A marubozu candle is represented only by a body; it has no wicks or shadows extending from the top or bottom of the candle. A white marubozu candle has a long white body and is formed when the open equals the low and the close equals the high.
The white marubozu candle indicates that buyers controlled the price of the stock from the opening bell to the close of the day, and is considered very
bullish
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated Market trends, price development in a market. This attitude is the accumulation of a variety of fundamental analysis, fundamenta ...
.
A black marubozu candle has a long black body and is formed when the open equals the high and the close equals the low. A black marubozu indicates that sellers controlled the price from the opening bell to the close of the day, and is considered very
bearish
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including ...
.
See also
*
Candlestick chart
A candlestick chart (also called Japanese candlestick chart or K-line) is a style of financial chart used to describe price movements of a security, derivative, or currency.
It is similar to a bar chart in that each candlestick represents all f ...
*
Doji
The doji (jp:どうじ 同事, ''same matter'') is a commonly found pattern in a candlestick chart of financially traded assets ( stocks, bonds, futures, etc.) in technical analysis. It is characterized by being small in length—meaning a small t ...
References
Candlestick patterns
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