White and Black Marubozu Candlestick Formation

White and Black Marubozu

Ideally Marubozu is a candlestick with no upper shadow and lower shadow, however, there are Marubozu formations that have upper shadow without lower shadow and on the contrary, Marubozu that has only a lower shadow without upper shadow. With regard to the color of the candlestick body, there are two types of Marubozu, namely black and white Marubozu.

In candlestick analysis, Marubozu is including one candlestick indicators that quite strong its influence, either white or black Marubozu. In addition the require to not having upper and lower shadow as above, a candlestick just can be categorized as a long Marubozu if the body of candlestick in long body category (equal to the body length when we identify the existence of long white / black candlestick)

Information mirrored by Marubozu is the occurrence of movement in one direction. So it is different with other candlestick formation that reflects the action of the attractive price between buyer and seller, then in the formation of Marubozu there is no action attraction between the seller and the buyer, but only movement in one direction only.

White opening Marubozu is a Marubozu that has long white body without lower shadow but has a short or very short upper shadow. White opening Marubozu also reflects the creation of a strong positive sentiment, but still there is little selling pressure as reflected in the position of closing price slightly lower than the highest price. While white closing Marubozu is a long white candlestick without upper shadow but still has short or very short lower shadow.

Black opening Marubozu is a long black candlestick without upper shadow but still has short or very short lower shadow. While black closing Marubozu is a long black candletick with short or very short upper shadow without lower shadow.
Black Marubozu generally provide information that occurs fairly strong negative sentiment, so causing price continue to decline from opening until closing. Thus it is clearly the highest price will be equal to the opening price and the lowest price will be equal to the closing price.

White Marubozu on the other hand, reflects the creation of quite positive sentiment so causing price continue to arise from opening to closing, so that the lowest price will be equal to the opening price while the highest price will be equal to the closing price.

Indications that produced by Marubozu formation equal to indication that generated by long candlestick, thus, the bullish or bearish indications and limitations of support and resistance that prevail in the long candlestick analysis is also applicable in the analysis of black and white Marubozu, while the difference between the long candlestick and Marubozu is lies in the strength / validity side of the information it contains, where bullish or bearish indication that generated by the Marubozu formation is stronger and better than the indication generated by long candlestick formations. This is happen because if in the long white or black candlestick still occur the action attraction between the seller and the buyer, then in the formation Marubozu indication of attraction is not visible, or there is movement in one direction only. Thus, it is clear the information of direction of trend would be happen from Marubozu information would be more powerful than the same information generated by the formation of long candlestick pattern.

Due to the nature of Marubozu candlestick pattern equal to long candlestick, then the same too with the long candlestick analysis we must also do trend analysis that precedes the emergence of Marubozu formation of a candlestick pattern by applying the formula calculation of candlestick.