This article explains the opening and closing of Marubozu patterns in Japanese candlestick charts.
Close Marubozu
A Marubozu closure has no shadow at the end. A white body will not have shadow on top. A black body will have no shadow at the bottom. In both cases, they are strong signals corresponding to the direction that each one represents and are used in an action analysis.
A white body that has a lower shadow but not at the bottom is called: a white bull Marubozu. When the days open, prices will decrease but then start to rise to end the day at the top.
The black bass closing Marubozu has a superior shadow but it does not have at the bottom. Prices go up when the day starts, then they start coming down to finish the day at the lowest. This signal indicates a bearish day and could show either a sale before the Bulls again take control, or the continuation of the downward trend.
Opening Marubozu
The Marubozu opening has no shadow extended from the opening price at the end of the body. A white body would not have shadow on the bottom and the black candle should not have shade on top. Although these signals are strong, they are not as much as the closing Marubozu.
The white bull opening Marubozu has a superior shadow but no shade to low and when the days open, prices go up all day. Then, the price closes higher than the opening price however does not close higher than the maximum of the day.
The Marubozu Black bassist of opening indicates a bearish day that worries the Bulls. With this pattern of Japanese candles, the opening of the day with prices arrives below the opening price. Then the price drops all day with a closing price lower than the opening price. However, the closing price is not less than the day.
One of the biggest mistakes of investors is that prices move based on fundamental reasons when in fact, prices move rather based on "the perception" of the fundamental reasons. The Japanese rice traders discovered it a long time ago. Why do prices go down when good events are advertised? The answer is that the anticipation of these good news was already incorporated in the price of action.
Please continue learning to identify each pattern of Japanese candles as well as what this pattern indicates what is happening in the markets.
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