Marubozo

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DEFINITION of 'Marubozo'

A type of candlestick charting formation that appears when a security's price does not trade outside the range of the opening and closing prices.

BREAKING DOWN 'Marubozo'

The marubozo's defining characteristic is the absence of upper or lower shadows. On an up day the opening price is equal to the day's low, and the closing price is equal to the day's high. This type of candle suggests strongly that there is a greater demand for the stock than there is willingness for people to sell it. The opposite is true when the marubozo appears on a down day (when the opening price is equal to the high of the day).

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RELATED FAQS
  1. How are Marubozo patterns interpreted by analysts and traders?

    A Japanese candlestick pattern, the Marubozo, appears at first to be a bar chart column rather than a candlestick period. ... Read Full Answer >>
  2. What do you call a candlestick with no shadows, and what does it mean?

    A candlestick with no shadow is regarded as a strong signal of conviction by either buyers or sellers depending on whether ... Read Full Answer >>
  3. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  4. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  5. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
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    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>

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