Category: 2. Candlestick Patterns 1 to 10

What is the Morning Star pattern? Overview A morning star is a visual three candlesticks pattern. Technical analysts usually interpret it as a bullish sign. It forms following a downward trend and it shows the start of an upward climb. It is a sign of a reversal in the previous price trend. Traders hunt for the…

In most instances, the stop-loss for any trade taken on the basis of a marubozu candlestick should be low or high of the candle. Although marubozu is a strong candlestick pattern, it is wise to avoid extremely small (less than 0.5 percent range) or long candle (over 5 percent range).  A candle that is extremely…

The color of the candlestick shows that either the sellers or buyers have full control of the market. The style of trading will vary depending on the type of marubozu. Before entering a trade, it is advisable for you to wait for another confirmation pattern or candle. Trading with Bullish Marubozu The absence of a…

Marubozu candlesticks can be found on all stock charts and all time frames. Depending on who controlled the day, they can either be bullish or bearish. They are used with technical analysis to show how a stock traded for the day. Usually, stock trading is a competition between buyers and sellers. There are days when one side…

It is fairly easy to identify a marubozu pattern because it is a single candlestick having a real body without any kind of shadows. Typically, when bullish, they are white or green on stock charts and when bearish, they are red or black. In bearish marubozu, the open price is equal to the high price and the close price…

Marubozu means “bald head” or “shaved head” in Japanese, and this is shown in the absence of wicks or shadow on the candlestick, meaning that the opening or closing price will be the same as the maximum prices of the candle. The absence of shadow indicates that the trading session opened at a high price…