The Bearish Marubozu Candlestick Pattern
The Bearish Marubozu candlestick pattern is composed of a single candlestick. It is a bearish candlestick and indicates that sellers controlled the entire trading session from open to close. It is the opposite of the Bullish Marubozu candlestick pattern. The Bearish Marubozu candlestick pattern can be used as a bearish entry point.
In this article you will learn:
- What is a Bearish Marubozu candlestick pattern
- How to identify and interpret a Bearish Marubozu candlestick pattern
- Trading techniques after confirming a Bearish Marubozu candlestick pattern
Our Latest Bearish Marubozu Stock Alert
What is a Bearish Marubozu candlestick pattern?
The Bearish Marubozu candlestick pattern is composed of a single candlestick. It is a strong indication of bearish sentiment due to the amount of selling pressure. At market open, sellers continued to push the price of the stock down all the way until market close. This means that sellers overwhelmed buyers the entire trading session.
How to Identify a Bearish Marubozu Candlestick Pattern
The Bearish Marubozu candlestick is a bearish candlestick, so the closing price of the stock must be lower than the opening price. The candlestick should have little to no upper or lower wick, and ideally just be the size of the body. In addition, the body should be larger than the average body size of the past 20 trading periods. Lastly, the higher the volume indicates a stronger signal. Low volume could indicate a false positive. Typically, you should wait at least one period to confirm the bearish trend.