Maribozu Candle

Maribozu Candle

Maribozu Candle

In this article, we will look at one of the most interesting candle shapes – the maribozu candle. Some traders call this figure consisting of Japanese candlesticks the ""Maribozu Brothers"". How to behave, what decisions to make when seeing maribozu candles, we will tell you later.

What or who are the Maribozu twins?
Brothers Marubozu (Maribozu) is considered to be a kind of model consisting of only one Japanese candle (this can include doji). If you translate the word ""Marubozu ""from Japanese, it means""bald or shorn"" in our language. This name was given to the candle due to its appearance. After all, the maribozu candle has no shadows (tails). It seems that the tails were, but they were "" trimmed”.

What are the types of Maribozu candles?
maribozu candle

Figure 1. Example of white and black Maribozu.

There are only two figures in this formation:

White Maribozu.
Black Maribozu.
White Maribozu
The white Maribozu candle is a long candle model without shadows. If such a candle is formed on the Forex chart, it indicates the continuation of the upward movement. White Maribozu is also called a bullish model, which indicates only an increase in the price. Here's what the white (bullish) Marubozu looks like on the chart:


Figure 2. Example of a white maribozu candle.

Black Maribozu
The time has come to consider a black candle Maribozu. The black Maribozu looks exactly like its twin brother (the white Maribozu). The only difference is in color. So, if a trader sees a long black candle on the chart – there is a bearish direction in the market, and you need to be prepared for a downward movement. For those who don't know what black Maribozu looks like on the chart, see below:

black maribozu

Figure 3. Example of a black maribozu candle.

Important: we emphasize that white or black Maribozu without tails (shadows) are very rare on the chart of a particular currency pair. However, it should be taken into account that the maribozu brothers can take on a shadowy appearance. You need to be able to see such candles.

At the beginning of this article, we talked about the fact That maribozu candles are long – bodied Japanese candles with no shadows (tails) or candles with insignificant tails. The fact is that Maribozu has distant relatives. Consider them.

Varieties Of maribozu with shadows
We are talking about Maribozu opening and closing, as they look, see below:

maribozu opening and closing

Figure 4. Maribozu opening and closing.

Let's talk about each of them in more detail.

The Maribozu opening candle assumes the same opening price. For white Maribozu – the minimum price, or for black Maribozu-the maximum opening price. That is why there is no shadow on one side, but there is a shadow on the other side of the candle.

It is quite easy to recognize the maribozu opening patterns (white Marubozu). To do this, you need to look at the maximum price and the closing price. In the case of black Maribozu – at the minimum price. The situation is similar with shadows. The meaning of these figures is the same: white are bullish models, black are bearish.

If a Forex trader observes the Maribozu brothers ' formations, and these are quite strong figures that indicate a continuation of the movement, or a corresponding trend. In other words, this candlestick pattern shows that bears or bulls predominate. Moreover, the power of this or that “beast "" is so great that it is able to completely control the market. This is why the chart shows that the minimum and maximum prices coincide with the closing and opening price levels. This can be observed without any shadows at the candle.

How to use Maribozu models in trading?
Being able to recognize these patterns on the charts, you can start trading currency pairs. Let's look at an example of buying and selling using Japanese maribozu candles.

Example of a sale transaction
On the chart below, we can see an excellent sell signal, which is indicated by the black Maribozu. In conjunction with two indicators moving average (period 50) and Awesome Oscillator (AO) with standard settings, you can show pretty good results.

maribozu sale

Figure 5. Example of a sale based on a Maribozu signal.

We see a black candle Maribozu with small shadows. It crossed the mA indicator, see when the AO indicator is in the negative zone, and then enter. You can close a position after changing one of the AO indicator bars from red to green.

Example of a purchase transaction
maribozu purchase

Figure 6. Example of a purchase using the Maribozu signal.

The exponential moving average together with the maribozu candle only once again made it clear that the movement will be upward. The excellent Awesome Oscillator indicator only reinforced this assumption by showing a green bar. You can safely buy.

You can close a trade when the oscillator moves into the negative zone.

If you see maribosa candles on the chart, you can use standard indicators to find out whether the price will rise or fall in the future. And this strong signal is always in the hands of a professional trader. The main thing is to correctly distinguish the types of Maribozu formations and then, almost always, there will be a profit.

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