Marubozu

Definition

• Just the Body without shadow

• Bullish Marubozu - OPEN = LOW, CLOSE = HIGH

• Bearish Marubozu - OPEN = HIGH, CLOSE = LOW

  

  Ideal Marubozu candlesticks

• Violates rule 3: look for prior trend.

• Flexible Identification - The Body should be at least a percentage higher than the shadows.

Inference

• Blue Marubozu - People are buying at any price point, thus a bullish market.
• Red Marubozu - People are selling at any price point, thus bearish market.

Action

• LONG if bullish marubozu
• SHORT if bearish marubozu

Spinning Top

Definition

• The candles have a small real body.

• The upper and lower shadow are almost equal.

  

Inference

• Small Read Body - Since OPEN & CLOSE price are almost same. The color in a spinning top DOESN'T MATTER.
• Upper Shadow - Bulls tried to pull the market up but failed.