Marubozu Candlestick Pattern: Theory & Usage

The Marubozu is a strong momentum candlestick pattern that signals strong buying or selling pressure. It consists of a single candle with the following characteristics:

* Bullish Marubozu : A large green candle with no shadows (or very small shadows), indicating strong buying pressure throughout the session.
* Bearish Marubozu : A large red candle with no shadows (or very small shadows), indicating strong selling pressure throughout the session.

The Marubozu pattern suggests that the market is controlled by either buyers (for bullish Marubozu) or sellers (for bearish Marubozu) with no significant resistance during the trading session.

How Traders Use It:
* Entry Point : Buy when a bullish Marubozu forms, or sell when a bearish Marubozu forms.
* Stop-Loss : Place it below (for bullish) or above (for bearish) the Marubozu candle.
* Target Price : Use previous support or resistance levels to set your target.

The Marubozu pattern is often seen in strong trending markets , indicating the potential for continued momentum