Black Marubozu Candlestick Pattern

The black Marubozu candle is a powerful indicator of a downward trend in the stock market. There are three different types of black Marubozu candles, including the black Marubozu, black opening Marubozu, and black closing Marubozu. A black Marubozu candle signals that sellers have had control over the stock price from the opening bell to the closing bell. This candlestick pattern is characterized by its long, black body without any upper or lower shadows.

A black opening Marubozu, on the other hand, has a small lower shadow, but no upper shadow. The opening and high prices are the same, while the low price is slightly lower, resulting in a small lower shadow. Lastly, the black closing Marubozu has a small upper shadow, but no lower shadow. The closing price and the low price are the same.

All three of these patterns signify a strong downward trend in the stock market, with the black Marubozu being the strongest of the three. By paying attention to these candlestick patterns, traders can gain insight into market trends and make informed decisions about buying and selling stocks.