Doji Stock Candles Pattern and Marubozu Candles Pattern
Doji Consolidation and Marubozu Candles for Indices
By analyzing the size and shape of a candlestick, traders can determine the momentum of buyers or sellers. It also helps in identifying any underlying weaknesses on either side of the market.
Long Body Candles
Candles with long bodies mean many buyers or sellers were active. It depends on the candle's color.
When the cost moves a lot from the beginning price to the ending price, it tells you how strong the buyers or sellers are.
Long Blue Candlesticks - Strength of Buyers
Long Red Candlesticks - Strength of Sellers
Long Body Candles
Short Body Candles
Candlesticks that have small bodies reveal that there weren't many buyers or sellers & the price didn't change much from when it opened to when it closed.
These show that the buyers or sellers were not very strong.
Short Body Candles
Marubozu Candle
Marubozu are long candlesticks that have no upper or lower shadows, Like illustrated below.
Marubozu Candlesticks
Marubozu are ongoing candle patterns that suggest the stock trading price will continue in the same direction as the marubozu candlestick. The marubozu can be white/blue or black/red, depending on which way the market price trend is going.
Marubozu Candles
White marubozu - the open is also the low & the close also is the high.
A Marubozu candle signifies that no price reversals occurred throughout that specific stock trading period, indicating that buyers held complete dominance over the trading price.
White Marubozu is a pattern that suggests the trend will continue, meaning the next candlestick will probably keep going up.
Black marubozu - the open is also the high & the close is also low.
A Marubozu candlestick formation implies that price movement during that period encountered no significant pullbacks, indicating that sellers maintained undisputed control over the traded price.
Black Marubozu is a continuation pattern meaning the next candlestick is likely to continue in same downward trend direction.
Get More Topics:
- Techniques for Chart Analysis of Indices Utilizing Trend Lines
- Executing MA Cross-over Strategies for Index Trades
- Developing a Strategy for DJ30 in the DJ30 Training Course
- Bollinger Band Width Stock Index Technical Indicator Analysis
- Drawing Trendlines for Indices Analysis
