Definition
Bearish Marubozu Black is a single black candle. It has neither higher, nor lower shadow. The candle is a strong, bearish formation.
- Trend: Neutral
- Expected trend: Bearish
- Previous trend: Neutral
- Reliability: Low
- Type: Neutral
- Number: 1
Recognition
- The candle has neither higher, nor lower shadow. It has a black body.
- The share price falls all day.
- The share closes at the daily minimum.
Interpretation
Marubozu Black is a candle when the opening price is the daily maximum and the closing price is the daily minimum. The trading day was dominated by selling activity. The candle can signal the continuation of an inclining trend or a final sale before a trend reversal.
Important factors
Marubozu Black can be both an inclining trend continuation signal or a trend reversal signal. Its role depends on the previous candles. Bearish Marubozu Black is a single black candle with low reliability. It only reflects the trading of one day and it can signal both the continuation or the reversal of a trend. Therefore, it is recommended to interpret the formation with the previous candles and formations.
