[ad_1]
White Marubozu Candlestick
With the white marubozu candlestick, I am reminded of the story, “The Emperor’s New Clothes” where the emperor did not wear any clothes. The white marubozu candle has no shadows! If you can call a candle naked, then maybe this is an example. It appears as a tall white blob on the charts, and it acts as a continuation 56% of the time. That type of performance is what I call near random.
$ $ $
My book, Encyclopedia of Candlestick Charts
, pictured on the left, takes an in-depth look at candlesticks, including performance statistics.
White Marubozu Candlestick: Summary
$ $ $
White Marubozu Candlestick: Important Results
Theoretical performance: Continuation Tested performance: Continuation 56% of the time Frequency rank: 27 Overall performance rank: 71 Best percentage meeting price target: 79% (bear market, down breakout) Best average move in 10 days: -4.79% (bear market, down breakout) Best 10-day performance rank: 26 (bull market, down breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  White Marubozu |
The white marubozu candlestick is a tall white candle with no shadows. It suggests a continuation of the existing price trend but only 56% of the time. Thus, be prepared for price to reverse direction before the breakout or soon thereafter. The frequency rank is high enough, 27, where 1 is the most popular, that you should have no trouble finding this candle in a historical price series. The overall price performance rank is a distant 71 where 1 is best. Thus, do not look for price to breakout and then make a huge move. That could happen but the odds are against it.
White Marubozu Candlestick: Discussion
- White marubozu candles that appear within a third of the yearly low perform best — page 547.
- Patterns within a third of the yearly high act as continuations most often — page 549.
- Breakouts below the 50-trading moving average tend to work best — page 549.
White Marubozu Candlestick: Three Trading Tidbits
This chart shows an example of a white marubozu candlestick at A. The candle is taller than recent ones, it is white, and it has no shadows. That qualifies it as a white marubozu.
This white marubozu appears just after price reverses from down to up. The upturn is not a long one. It lasts just one more day after the white marubozu before pausing and forming a tweezers top candle pattern (two candles sharing the same high price).
The breakout from the white marubozu is upward when price the next day closes above the marubozu. Thus, the candle line acts as a continuation of the brief upward trend already in progress.
[ad_2]
