WHITE MARUBOZU
Definition
This candlestick represents extreme bullishness and is characterized by a long white body having no shadows on either end.
Recognition Criteria
1. The body of the candlestick is white and long.
2. There are no upper or lower shadows.
Candlestick Requirements and Flexibility
The white body of the candlestick should be longer relative to the other candlesticks on the chart. Shadows should not exist.
Trader’s Behavior
A White Marubozu simply means 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 shows that the buyers controlled the price action from the first trade to the last trade. The day opens and prices continue to go up all day without looking back, thus forming a long white day 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 picture is also important. It may show a potential turning point and suggest that prices have reached a support level after an extended decline. If it is seen after a long and significant rally, it may point to excessive bullishness, and that prices are at dangerously high levels. Still, the candlestick alone is not reliable enough to decide the direction of the markets, since it reflects only one day’s trading.