Closing Marubozu Bullish Pattern: What Is It and How to Trade Using This Pattern
Marubozu candlesticks indicate more decisive market activity and suggest that price movement in the direction of the candle's closing price will continue. Candlestick patterns of this style appear as long, solid candles without upper and lower shadows. Marubozu can be classified based on the color of its body. Here we will talk about the Closing Marubozu Bullish pattern, which is white in color and also known as White closing Marubozu.
What is the Closing Marubozu Bullish Pattern?
When the open price is the low price, and the close price is the high price of the day, the Closing Marubozu Bullish candlestick pattern occurs. It illustrates the powerful bullish market forces that continue to fuel bullish buying momentum at every price throughout the entire trading session.
|Number of candlesticks||One|
|Price trend leading to the pattern||None required|
|Configuration||A tall white candle with a lower shadow, but no upper shadow, is ideal|
How to Identify the Closing Marubozu Bullish Pattern?
The Closing Marubozu Bullish candlestick pattern is easy to identify because it features a single candle with a long white body and no upper shadow but only a lower shadow.
The Closing Marubozu candlestick denotes stronger movement. It is extremely rare to see a Closing Marubozu pattern form on a daily or weekly chart. However, it can be more easily seen when volatility and strong movements occur. Furthermore, it describes that market participants maintain market sentiments until the end of a trading session, just like prices that move in only one direction.
What Does Closing Marubozu Bullish Pattern Indicate?
The Closing Marubozu Bullish pattern is popular among traders for its ability to demonstrate market trends in one direction. One side remains so dominant in both the bearish and bullish Marubozu patterns that it completely overpowers the other. The Closing Marubozu Bullish pattern indicates that the buyers completely controlled the market. The buying pressure remained high throughout the session.
A Closing Marubozu pattern becomes more interesting if the candle appears near the resistance or support levels. It is because it can open from one side and close from the other, further contributing to the current trend.
Although they are most powerful when they follow a period of sideways trading, the trading strategies will differ based on the type of Closing Marubozu Bullish pattern. Traders can place stop-loss at the high or low of the candle.
How Do You Trade Closing Marubozu Bullish?
The appearance of a Closing Marubozu Bullish during an uptrend indicates a continuation of the trend. It indicates a trend reversal when the stock is in a downtrend - a change in trader sentiment has caused the stock to be bullish now. As a result of this change, surges of bullish patterns are likely to continue in the coming trading sessions. Therefore, traders should watch for buying opportunities after Bullish Marubozus. After a market decline, the price bounces off the lows or breaks above the resistance level in an uptrend.
When the price rises above the highs of the white candlestick after a small correction downward, you can buy. Set your Stop Loss behind the low of the pattern.
If you see some signs of a downward reversal or when a strong resistance level is reached, you should take your profit.
Drawbacks of Closing Marubozu Bullish:
Despite the Marubozu being an extremely strong pattern, it can occasionally give false signals, such as those associated with a very small or extremely large candlestick. The small stick exhibits a limited amount of trading activity, and the large one indicates extensive trading. Either one of these candlesticks may generate false signals. Further confirmation is, therefore, necessary. It is not recommended to enter a trade solely based on the Closing Marubozu pattern.
There is a low degree of reliability associated with Bullish Marubozu Closing patterns as it cannot clearly predict market movements. There is a possibility that it can serve as both a bullish confirmation and a bearish reversal pattern, depending on the previous day's candle. Observing previous candles will help you to understand the Bullish Marubozu Closing