The word marubozu means “bald head” in Japanese, and this is reflected in the candlestick’s lack of wicks. When the open price of a stock = day low, and close price = day high, we have the bullish or White Marubozu. A White Marubozu is a one day bullish indicator that moves upward and is considered very bullish. If a White Marubozu occurs at the end of an uptrend, a continuation is likely. If a White Marubozu occurs at the end of a downtrend, a reversal is likely.
(A small amount of flexibility is allowed in the definition of the white marubozu, when the open is almost equal to the low, and close is almost equal to the high)
Last Updated: 21 Mar 2019, 10:16 a.m. (IST)