Marubozu Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Marubozu pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Marubozu Candlestick Pattern

The Marubozu candlestick pattern is a potent indicator often utilized by traders to gauge market sentiment. This pattern is characterized by a substantial body with little to no wicks, signifying strong buying or selling activity throughout the entire trading period.

Characteristics:

• Body: The body of the Marubozu is large, indicating that the opening and closing prices are significantly different. This is a clear indication of a strong bullish or bearish sentiment in the market.
• Wicks: The Marubozu pattern typically has little to no upper or lower wicks. This characteristic implies that the trading started near the high or low and ended near the opposite extreme.

In the provided Marubozu function, a tolerance level is set to ascertain the maximum allowable wick size for a candlestick to qualify as a Marubozu. The function calculates the upper and lower wicks' sizes and compares them against the tolerance, determining whether the wicks are sufficiently short to classify the candlestick as a Marubozu.

Significance:

A Marubozu candlestick pattern can indicate a strong continuation in the current trend or potentially signal the beginning of a new trend. Here’s how:

• Bullish Marubozu: Occurs when the open equals the low and the close equals the high. It indicates strong buying pressure, with buyers in control from the opening to the closing of the trading period.
• Bearish Marubozu: Occurs when the open equals the high and the close equals the low. It indicates strong selling pressure, with sellers dominating from the beginning to the end of the trading session.

While the Marubozu pattern can be a strong signal, traders often seek additional confirmation from other technical indicators and patterns to make more informed trading decisions. It is essential to consider the overall market context, including support and resistance levels, trend direction, and volume, before taking action based on this pattern.