What is White Opening Marubozu?
White Opening Marubozu is a type of candlestick where open price is the lowest price of that underlying stock for that session,however close price is not the highest price.
Underlying Psychology of White Opening Marubozu
There were many market participants ready to buy the underlying stock at any price during the session and due to this high demand the price kept on increasing , however at the end seller emerged and price dipped below the highest price of the day and buyers couldn’t close it at highest.
If you think about it,the White Opening Marubozu feels weaker compared to Bullish Marubozu or White Closing Marubozu as even though buyers were in control during the session, they couldn’t defeat the sellers completely and hence couldn’t close at session’s high.
Example of How to Use White Opening Marubozu
How to Trade White Opening Marubozu
Decision: In case of White Opening Marubozu,traders start looking for buying opportunities only after confirmation, buy price should be around the closing price of confirmation candle.
Stop loss: What if the market reverse its direction after printing the white opening Marubozu ? The low of the candle will act as stop-loss in case that happen.
Beginner in candlestick? checkout below
- Shooting star candlestick pattern and how to use is for trading.
- Hammer candlestick pattern and how to use it for trading.
- Long legged doji candlestick pattern and how to use it for trading.
- Gravestone doji candlestick and how to use it for trading.
Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.Ed Seykota