2. Marubozu Candlestick
Marubozu candlesticks are formed when the price that the market opens and closes at the extreme ends of the candlestick. These candlesticks look like a block, typically with long bodies, with very little to no wicks.
Marubozu, which means “bald” in Japanese, is reflected by the lack of a wick in the candlestick. The Marubozu candlestick can be a very bullish or bearish indication, depending on the colour of the candlestick. This due to the strong control of price that the buyers or sellers have in the market, for a bullish and bearish candlestick respectively.
Marubozu candlesticks can be interpreted as a strong signal of trend reversal or trend continuation, depending on where the candlestick appears. For example, within a downtrend, if a bearish Marubozu candlestick occurs, the downtrend is likely to continue, but should a bullish Marubozu candlestick occurs, a reversal is likely. Similarly, within an uptrend, if a bullish Marubozu candlestick occurs, the uptrend is likely to continue, but should a bearish Marubozu candlestick occurs, a reversal is likely.