• Tuesday, 03 February 2009 23:19
• Last Updated Monday, 03 May 2010 23:12
• Written by Desmond Wira

Marubozu is a type of candle that shows dominant bullish or bearish trend, depend on its color. After Marubozu shows up, there's a lot of chances that the trend (bullish or bearish) is continue. Marubozu signals market is very confident about the trend. Sometimes the trend is so strong and creates Three White Soldier and Three Black Crows pattern.

Type: Continuity Marubozu White signals bearish trend Marubozu Black signals bearish trend Characteristic: no upper, no lower shadow

There are 2 things that confirmed Marubozu as continuity pattern:
1. Long body. The longer the body means stronger signal
2. High volume. This indicates investors are very confident about the price movement.

You should be careful when seeing a Marubozu. You should always watch the next candle to determine the real pattern. For example, sometimes there's a Doji after Marubozu, and that means a reversal pattern.

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