{"id":50137,"date":"2024-01-03T19:16:53","date_gmt":"2024-01-03T13:46:53","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?p=50137"},"modified":"2024-04-05T12:14:48","modified_gmt":"2024-04-05T06:44:48","slug":"white-marubozu","status":"publish","type":"post","link":"https:\/\/www.5paisa.com\/finschool\/white-marubozu\/","title":{"rendered":"White Marubozu"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"50137\" class=\"elementor elementor-50137\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2ca4a5e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ca4a5e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a94af5d\" data-id=\"a94af5d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc7d404 elementor-widget elementor-widget-text-editor\" data-id=\"cc7d404\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The White Marubozu is a Japanese Candlestick Pattern and it is a bullish reversal pattern. It appears after the price decline and shows rejection from\u00a0 lower prices. This pattern is bullish because traders expect a bull move after the White Marubozu appears. It is a reversal pattern because when the prices go down White Marubozu appears and also it is a frequent signal of the end of a trend. The White Marubozu pattern is also a mirrored version of the Black Marubozu Candlestick pattern.<\/p><p><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2024\/01\/White-Marubozu.svg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-image-50140 aligncenter\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2024\/01\/White-Marubozu.svg\" alt=\"White Marubozu\" width=\"300\" height=\"300\" \/><\/a><\/p><h3><strong>How to Identify The White Marubozu Candlestick Pattern<\/strong><\/h3><p>The White Marubozu candlestick pattern is formed by one single candle where the body is big and wicks are small or non-existent. This pattern is relatively easy to spot compared to other candlestick patterns. The colour of the candle is always green for a white Marubozu. The opening price will be equal to the day\u2019s low and the closing price will be equal to the day\u2019s high. The candle will have a large body and there will be a huge gap between the opening and the closing price. There is no wick on the upper and lower part of the body.\u00a0 The longer the body the more bullish the signal because it indicates that the buyers are placing purchase orders aggressively.<\/p><h3><strong>Variants of the White Marubozu Candlestick Pattern<\/strong><\/h3><p>The White Marubozu Candlestick Pattern may appear a little different on charts.<\/p><p>There are three versions of the White Marubozu:<\/p><ul><li><strong>Full<\/strong>: No wicks at the top or bottom<\/li><li><strong>Open<\/strong>: No wicks at the bottom, but a small wick at the top<\/li><li><strong>Close<\/strong>: No wicks at the top, but a small wick at the bottom<\/li><\/ul><h3><strong>Trading Strategy for \u201cWhite Marubozu\u201d pattern<\/strong><\/h3><p>To trade the White Marubozu candlestick pattern it\u2019s not enough to simply find a candle with the same shape on your charts. Where it appears. This means that the same shape appearing at different locations may have different meanings. When trading the White Marubozu, we want to see the price first going down, making a bearish move. A White Marubozu appearing after this bearish move is a sign of a possible reversal to the upside. The formation of a white Marubozu candle does not necessarily mean that the stock will continue to rise. The bears may take over the market the next day. Therefore, it is always best to confirm the suspicion by waiting for the candles that appear after the Marubozu.\u00a0 Other technical indicators such as volume, trend lines, etc should be combined with this pattern to confirm the trade.\u00a0<\/p><h3><strong>Strategies To Trade The White Marubozu Candlestick Pattern<\/strong><\/h3><h4><strong>Strategy 1: Pullbacks On Naked Charts<\/strong><\/h4><p>As a bullish reversal pattern, the White Marubozu is a great pattern to watch for when the price is on an uptrend. Just wait for a pullback to start, and then spot when the White Marubozu appears. That often signs the end of the pullback and the start of the new leg to the upside.<\/p><h4><strong>Strategy 2: Trading The White Marubozu With Support Levels<\/strong><\/h4><p>Support and resistance levels are great places to find price reversals. Since we are looking for moves to the upside, we want to trade the White Marubozu using support levels.<\/p><p><strong>How does it work:<\/strong><\/p><ul><li>Draw support levels on your charts<\/li><li>Wait for the price to decline and hit the support level<\/li><li>Check if a White Marubozu appears at that level<\/li><li>Go long when the price breaks the high of the White Marubozu<\/li><li>Set your stop loss and take profit levels, and expect a move to the upside<\/li><\/ul><h4><strong>Strategy 3: Trading The White Marubozu With Moving Averages<\/strong><\/h4><p>Moving averages are great trading indicators to trade trends.<\/p><p>The idea here is to trade pullbacks to the moving average when the price is on an uptrend.<\/p><p><strong>How does it work:<\/strong><\/p><ul><li>Find an uptrend, with the price jumping above a moving average<\/li><li>Wait for a decline in the price to the moving average<\/li><li>Check if a White Marubozu appears at the moving average<\/li><li>Go long when the price breaks the high of the White Marubozu<\/li><li>Set your stop loss and take profit levels, and expect another leg to the upside<\/li><\/ul><h4><strong>Strategy 4: Trading The White Marubozu With RSI Divergences<\/strong><\/h4><p>This is a bit different from the other trading strategies.<\/p><p>To find a bullish\u00a0RSI Divergence\u00a0we want to see the price on a downtrend first, making lower lows and lower highs.<\/p><p><strong>Here\u2019s how it works:<\/strong><\/p><ul><li>Find a downtrend<\/li><li>Mark the lows that the price makes after each leg to the downside<\/li><li>At the same time compare the price lows with the RSI indicator<\/li><li>When you see the RSI making higher lows while the price making lower lows, you found your divergence<\/li><li>Now you wait until a White Marubozu appears at a price lower low, aligned with an RSI higher low.<\/li><li>Go long when the price breaks the high of the White Marubozu<\/li><li>Set your stop loss and take profit levels, and expect a move to the upside<\/li><\/ul><h4><strong>Strategy 5: Trading The White Marubozu With Fibonacci<\/strong><\/h4><p>Another popular way of trading the White Marubozu candlestick is using the Fibonacci retracement tool. Fibonacci shows retracement levels where the price will tend to revert frequently.<\/p><p>Depending on the strength of the trend, different levels are more likely to work better with the White Marubozu pattern. Here you can learn more about the different\u00a0Fibonacci retracement levels.<\/p><p><strong>Here\u2019s how the strategy works:<\/strong><\/p><ul><li>You want to see the price on an uptrend<\/li><li>Then you wait for a decline, they always happen at some point<\/li><li>Pick your Fibonacci tool and draw the levels from the low to the high of the move<\/li><li>When the price hits a Fibonacci level and prints a White Marubozu, that\u2019s what you are waiting for<\/li><li>Go long when the price breaks the high of the White Marubozu<\/li><li>Set your stop loss and take profit levels, and expect a move to the upside<\/li><\/ul><h4><strong>Strategy 6: Trading The White Marubozu With Pivot Points<\/strong><\/h4><p>Pivot Points\u00a0are automatic support and resistance levels calculated using math formulas. If you are\u00a0day trading, the Daily Pivot Points are the most popular, although the Weekly and Monthly are frequently used too.<\/p><p><strong>Here\u2019s how to trade the White Marubozu pattern with Pivot Points:<\/strong><\/p><ul><li>Activate the Pivot Points indicator on your charts<\/li><li>Check which Pivot Points are under the price, those will tend to work as a support<\/li><li>Ideally, you want to see the price on an uptrend, although is not required<\/li><li>Wait for a decline of the price to a Pivot Point level<\/li><li>At that level, you want to see a White Marubozu pattern appearing, meaning that the level is being rejected<\/li><li>Go long when the price breaks the high of the White Marubozu<\/li><li>Set your stop loss and take profit levels, and expect a move to the upside<\/li><\/ul><h4><strong>Conclusion<\/strong><\/h4><p>Marubozu candlestick patterns are definitely a very useful trading signal due to their simplicity.\u00a0 However, like every other trading tool, it has its own flaws. The ability to predict price movement is not completely accurate owing to different charts and time frames. Even an amateur trader can identify a candlestick pattern on a chart but what matters is how effectively it is used in the trading strategy.<\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The White Marubozu is a Japanese Candlestick Pattern and it is a bullish reversal pattern. It appears after the price decline and shows rejection from\u00a0 lower prices. This pattern is bullish because traders expect a bull move after the White Marubozu appears. It is a reversal pattern because when the prices go down White Marubozu &#8230; <a title=\"White Marubozu\" class=\"read-more\" href=\"https:\/\/www.5paisa.com\/finschool\/white-marubozu\/\" aria-label=\"Read more about White Marubozu\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":50168,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,180],"tags":[],"class_list":["post-50137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-trading-chart-patterns"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/50137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=50137"}],"version-history":[{"count":29,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/50137\/revisions"}],"predecessor-version":[{"id":50167,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/50137\/revisions\/50167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/50168"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=50137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=50137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/tags?post=50137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}