WHITE
OPENING MARUBOZU | Type: | Reversal/Continuation |
| Relevance: | Bullish |
| Prior Trend: | N/A |
| Reliability: | Low |
| Confirmation: | Required |
| No. of Sticks: | 1 |
Definition:
The White Opening Marubozu is a single candlestick
pattern characterized by a long white body. It has an
upper shadow but no lower shadow. This is a strong bullish
candlestick pattern.
Recognition Criteria:
1. A White Opening Marubozu does not have lower shadow
but it has an upper shadow.
2. The day opens and prices continue to go up all day long forming a long white body with no lower shadow.
3. The prices close over the opening price but not at the high of the day thus creating an upper shadow.
2. The day opens and prices continue to go up all day long forming a long white body with no lower shadow.
3. The prices close over the opening price but not at the high of the day thus creating an upper shadow.
Explanation:
The White Opening Marubozu is a single candlestick
pattern characterized with a long white body displaying
a shadow on the closing side and but no shadow on the
opening side. This shows that the day opened and then
the prices continued to go up all day long without coming
below the opening level thus forming a long white body,
however prices did not close at the high of the day
and thus they created an upper shadow. It is a typical
bull day and strength of the bulls is enough to cause
some concern among the bears. A White Opening Marubozu,
on the other end, does not show as much bullish strength
as in the case of White Marubozu.
Important Factors:
Like all other Marubozu, what a White Opening Marubozu
says about the future course of the prices depends a
lot on the general picture. It may be the first part
of a bullish continuation pattern but it may also be
interpreted as a bearish reversal pattern depending
on the preceding day's candlesticks.
In the case of downtrend a White Opening Marubozu is
called as a Bullish Belt Hold Pattern.
The White Opening Marubozu is a single candlestick
pattern with low reliability. It reflects only one day's
trading and it may show the continuation of the trend
but may also indicate a reversal. It needs to be used
with other candlesticks for a better and healthier judgment
about the status of the trend.
0 comments:
Post a Comment