Marubozu is a pattern that often appears in a candlestick chart. Traders often use Marubozu candlestick pattern to analyze price action. This article will share some information about how to use this pattern when trading in Binomo.
What is Marubozu pattern?
In Japanese, Marubozu means a candle that lacks wicks. As described in the name, this is the candlestick with a long body and no shadow (closing price is the same as the highest or lowest price). When this pattern appears, the price has a strong trend and only goes toward a direction. It is likely to appear when price begins creating a trend. You can open a safe trade following the trend because this is a reliable sign.
How to trade with Marubozu candlestick pattern in Binomo
Marubozu pattern and support/resistance:
Requirement: 5-minute candlestick chart and the support or resistance level. Open a trade that has the expiration time equalling to the time of a candlestick (5 minutes).
How to open a trade: price cuts the support/resistance level with Marubozu candlestick + price tests the support/resistance zone again.
Marubozu candle appears to sign strong volatility in the market. Price breaks through the support/resistance zone and tests this zone again. It could be prevented to bounce back to the old zone. This is the sign to start a trade.
Marubozu and trend
Requirement: 5-minute candlestick chart and the price is in a trendline. Open a trade that follows the trend with the expiration time from 15 minutes.
How to open a trade = the price starts to enter a trend+ Marubozu candlestick appears to test the trend.
Explanation: To continue the trends, price creates a new top or bottom. That is the time that price tests the trendline. At that time, Marubozu pattern is the sign to open a trade (the sign that the trend still keeps goings).
Marubozu candlestick pattern with SMA30
Requirement: 5-minute candlestick chart + SMA30. Open a trade with the expiration time from 15 minutes.
How to open a trade = The price cuts SMA 30 line with a Marubozu candlestick.
SMA 30 line is seen as a dynamic level. If the price breaks this level with a Marubozu, this is a sign of a new trend.
I hope that this article will provide you with the necessary knowledge about Marubozu candlestick pattern. You can start practice and get used to this pattern by creating a new account today. Thank you for reading our tutorial.