WHITE MARUBOZU
Definition
This candlestick represents extreme bullishness and is characterized by a long white body with no shadows on either end.
Recognition Criteria
1. The candlestick has a long white body.
2. The candlestick features no upper or lower shadows.
Candlestick Requirements and Flexibility
The candlestick’s white body should be longer compared to the other candlesticks on the chart, and there should be no shadows.
Trader’s Behavior
A White Marubozu indicates that the opening price is equal to the low of the day, and the closing price is equal to the high of the day. This demonstrates that buyers controlled the price action from the first to the last trade. The day opens and prices continue to rise without retracing, forming a long white candlestick with no lower shadow. The day also closes at the high of the day with no upper shadow.
This candlestick is generally bullish. However, its position within the broader technical context is also critical. It may indicate a potential turning point, suggesting that prices have reached a support level after an extended decline. If observed following a prolonged and significant rally, it may signal excessive bullishness and that prices are at dangerously high levels. Nonetheless, the candlestick alone is insufficient to determine market direction, as it reflects only one day of trading.