Definition
Bearish Marubozu Opening is a single, long black candle. It has only lower shadow. The candle is a strong, bearish formation.
- Trend: Neutral
- Expected trend: Bearish
- Previous trend: Neutral
- Reliability: Low
- Type: Neutral
- Number: 1
Recognition
- Bearish Marubozu Opening has only lower shadow.
- The share price starts falling right after the market opens and forms a black candle.
- The market closes above the daily minimum.
Interpretation
Bearish Marubozu Opening consists of a single black candle. It has a long body and only lower shadow. This means that the share price fell right after the market opened but closed above the daily minimum. This formation is a typical in inclining trends. The candle can signal the continuation of an inclining trend or a final sale before a trend reversal.
Important factors
Bearish Marubozu Opening can be both an inclining trend continuation signal or a trend reversal signal. Its role depends on the previous candles. When appearing in ascending trends, the formation is called Bearish Belt Hold. Bearish Marubozu Opening consists of 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.
