BLACK OPENING MARUBOZU
Definition
This candlestick represents extreme bearishness and is characterized by a long black body with a lower shadow but no upper shadow.
Recognition Criteria
1. The candlestick has a long black body.
2. The candlestick has no upper shadow.
Candlestick Requirements and Flexibility
The candlestick’s black body should be longer compared to the other candlesticks on the chart. It has a shadow on the closing side but no shadow on the opening side.
Trader’s Behavior
A Black Opening Marubozu indicates that sellers controlled the price action from the first trade to the last. The day opens, and prices continue to decline throughout the day without looking back, forming a long black candlestick with no upper shadow. However, the day does not close at the low, resulting in the formation of a lower shadow.
This candlestick is generally bearish. However, its position within the broader technical context is also crucial. It may indicate a potential turning point, suggesting that prices have reached a resistance level after an extended rally (Bearish Belt Hold Pattern). If observed after a prolonged decline, it may signal panic or capitulation, representing a final sell-off attempt before bulls regain control. Nonetheless, the candlestick alone is insufficient to determine market direction, as it reflects only one day of trading.