Marubozu candlestick pattern – How to identify and trade it in Binomo

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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.

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How to trade effectively in binomo with Marubozu candlestick pattern
How to trade effectively in binomo with Marubozu pattern

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.

What is Marubozu candlestick pattern?
What is Marubozu candlestick pattern?

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 pattern in combination with resistance
Marubozu pattern in combination with support

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 pattern in combination with trend
Marubozu pattern in combination with trend

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.

Marubozu candlestick pattern works with SMA30
Marubozu candlestick pattern works with SMA30

Conclusion

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.

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