Definition
Bullish Marubozu Closing consists of a single candle with long white body and no upper shadow. It's a strong bullish candle formation.
- Trend: Neutral
- Expected trend: Bullish
- Previous trend: Neutral
- Reliability: Low
- Type: Neutral
- Number: 1
Recognition
- Bullish Marubozu Closing has only lower shadow.
- After opening, the prices fall sharply. However, the movement reverses shortly after the opening. The result is a white candle.
- The closing price is the daily maximum. Thus, there is no upper shadow.
Interpretation
Bullish Marubozu Closing is a single-candle formation. The candle has long white body and only lower shadow. The prices fall below the opening price for a short time. Then, a reversal comes and the share closes at the daily maximum. Apart from the period around the opening, the market is dominated by purchases during the day. The bullish day may raise concerns among short position owners. They may generate additional momentum for the price increase if they decide to leave their positions.
Important factors
Bullish Marubozu Closing is not able to forecast market movements. Depending on the previous day's candle, it can be both a bullish confirmation and a bearish reversal pattern. The formation has low reliability. It only represents the given day's market behaviour and can be both a continuation and a reversal formation. It is necessary to observe previous candles to determine the true role of the Bullish Marubozu Closing.
