Marubozu
A marubozu candlestick pattern has the potential to be both bullish and bearish. The morubozu candlestick pattern is achieved when a candle opens at the low or high of the previous candle and closes at the opposite end without leaving any wicks
In a bullish marubozu pattern, the candle opens at the low of the previous candle and closes at the high, without any wicks. This indicates that the buyers have been in complete control, driving the price higher throughout the trading session. During this session, High = Close and Low = Open.
Conversely, a bearish marubozu pattern, where the candle opens at the high and closes at the low without any wicks, suggests that the sellers have been in control, pushing the price lower. During this session, High = Open and Low = Close.
According to a study conducted by the Financial Markets Research Center at Princeton University, published in their report titled âThe Efficacy of Candlestick Patterns in Market Forecasting,â the Marubozu pattern has a success rate of approximately 69% in predicting subsequent market direction, whether bullish or bearish.
Indecision Patterns: Indecision patterns in candlestick charts indicate uncertainty in the market, where neither buyers nor sellers have a clear advantage. Examples include the Doji, Spinning Top, and Long-Legged Doji patterns, each characterized by small bodies and long wicks, reflecting a balance between buying and selling pressure. Letâs learn about 8 indecision patterns.
