WHITE CLOSING MARUBOZU
Definition
This candlestick represents extreme bullishness and is characterized by a long white body with a lower shadow but no upper shadow.
Recognition Criteria
1. The candlestick has a long white body.
2. The candlestick features no upper shadow.
Candlestick Requirements and Flexibility
The candlestick’s white body should be longer compared to the other candlesticks on the chart. It has a shadow on the opening side but no shadow on the closing side.
Trader’s Behavior
A White Closing Marubozu indicates that buyers controlled the price action from the first trade to the last trade. The day opens, and prices dip slightly, forming a lower shadow. This is followed by a rally that drives prices above the opening price, continuing throughout the day, and ends with the closing price at the day’s high. The bulls remain very strong during the day, except in the initial phase of the session.
This candlestick is generally bullish. However, its position within the broader technical context is also crucial. It may indicate a potential turning point, suggesting that prices have reached a support level after an extended decline. If observed after a prolonged and significant rally, it may signal excessive bullishness, indicating 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.