Marubozu

The Marubozu is special among candlestick trends as it shows the buyers of the stock have full control over it. This has a very distinct pattern:

1. The first candle will go upward with a certain open and close without any noticeable shadows.
2. The second candle goes in the opposite direction with a similarly open and close and not easy to spot shadows.

In other words, the gains from the first day were wiped out on the second day. At the same time, the stock did not go any higher or lower than it did before the Marubozu trend happened. This is an impressive form of control, but it is also hard to enter into a position when the Marubozu appears. The best thing to do for the Marubozu trend is to get into the appropriate position for a trade after the second candle. If the stock is about to go up, purchase the stock or enter a call option as there is a good chance the stock will move forward. The fact that the traders have more control over the stock’s value makes it likely that the stock will move in the new path that the Marubozu trend suggests.