Marubozu Candlestick Pattern
Twenty Fourth session of Forex Training
Welcome to Forex professional training in financial markets.
In this session long candle, Marubozu candlestick pattern, Three Black Crows and Three White Soldiers candles will be discussed.
Marubozu or Long candle
Long candle or Marubozu candle shows the market stability in both Buy and Sell orders.
It develops such confidence in traders which directs most parties in market to order on the same direction, while others prefer to wait if they are about to order on opposite direction.
For instance, most traders have placed Sell order on an asset with descending direction, however, few traders wait for a reversal point to place a Buy order.
Comparing candle sizes
Marubozu does not have any Shadows, thus the whole structure includes only main body despite of candle length.
Long candles have tiny Shadows in comparison to their long main body.
Most of the time Marubozu or Long candles are longer than other candles, which makes them highly noticeable.
In a descending trend, Marubozu or Long black candle confirms further decline of price.
Marubozu or Long black candle is a significant sign of market downfall after market price passes the Low point of candle, while white Long or Marubozu candle demonstrates an upward trend especially after market price passes the High point of a candle.
A Trader can find several examples on a chart in MT4 platform. For example, there is a Long white candle that is followed by a further price augment.
Another example shows that uptrend movement is confirmed by Long white candles that have small Shadows.
A Trader should compare the size of a Long or Marubozu candle with the nearby candles.
Sometimes a candle may have a tiny Shadow only on one side that can be found on chart easily.
There may be Long and Marubozu black candles, confirming decline on the price trend.
Another Marubozu white candle has been formed without any Shadow which was followed by further decline in market price.
Three Black Crows
There is a 3-set candle pattern called Three Black Crows which consists of 3 continuous black or downward candles on 3 consecutive timeframes.
After further decline under Low point of the last candle, it is supposed that market price will follow its downward direction.
Three White Soldiers
Another 3-set candle pattern known as Three White Soldiers, comprised of three sequential white candles on 3 different timeframes.
When price market crosses the High point of third candle, it would continue its upward direction.
Note that all 3-set candles must not have any gaps between their prices, which means that their High and Low must be connected with each other.
If there are 4 candles with the same pattern, a trader should consider the first candle as the starting candle of 3-set candle pattern.
They have different shapes and sizes to regular candles. The main body of these candles has normal size, however, their Shadows are very small, if there are any at all.
In the Platform
For instances, a trader can find multiple patterns on MT4.
The Three White Soldiers candles shows an upward trend, while this set is not a powerful one due to long Shadows.
Another example shows a Three Black Crows set, which is followed by a downfall.
In a 3-set pattern, if the third candle is a Marubozu or Long candle, then current direction of market price will be confirmed thoroughly.
Several 3-set candle patterns are available in a market chart.
That concludes this session, until next time and another session take care.