Marubozu
Marubozu is a Japanese candlestick charting pattern that is used to identify potential reversals in the market. It is a single candle pattern that is formed when the open, close, high, and low prices of a security are all the same. The Marubozu pattern is considered to be a strong bullish or bearish signal, depending on the direction of the candle.
History of Marubozu
The Marubozu pattern was first developed by Japanese rice traders in the 18th century. It is derived from the Japanese word “marubozu”, which means “shaved head”. The pattern is formed when the open, close, high, and low prices of a security are all the same. This indicates that the security has moved in one direction throughout the trading session, either up or down.
The Marubozu pattern is considered to be a strong bullish or bearish signal, depending on the direction of the candle. A white Marubozu indicates strong buying pressure, while a black Marubozu indicates strong selling pressure. Traders often use the Marubozu pattern to identify potential reversals in the market.
Table of Comparisons
| Pattern | Open | Close | High | Low |
|---|---|---|---|---|
| Marubozu | Same | Same | Same | Same |
| Doji | Different | Different | Same | Same |
| Hammer | Different | Higher | Same | Lower |
| Hanging Man | Different | Lower | Same | Higher |
Summary
The Marubozu pattern is a single candle pattern that is used to identify potential reversals in the market. It is formed when the open, close, high, and low prices of a security are all the same. The Marubozu pattern is considered to be a strong bullish or bearish signal, depending on the direction of the candle. Traders can find more information about this term on websites such as Investopedia, TradingView, and StockCharts.
See Also
- Doji
- Hammer
- Hanging Man
- Engulfing Pattern
- Harami
- Shooting Star
- Inverted Hammer
- Spinning Top
- Morning Star
- Evening Star
