Definition:
The White Closing Marubozu is a single candlestick
pattern characterized by a long white body with no upper
shadow. This is an extremely strong bullish candlestick
pattern.
Recognition Criteria:
1. A White Closing Marubozu has a lower shadow but
no upper shadow.
2. The day opens, the prices then slightly go lower
creating the lower shadow but then prices continue to
go up all day thus forming a long white day.
3. The day then closes at the high of the day and hence
with no upper shadow.
Explanation:
The White Closing Marubozu is a single candlestick
pattern characterized by a long white body with a shadow
on the open and but no shadow on the closing end of
the body. This candlestick shows that the day opened
and then prices went lower slightly, however it was
followed by a rally that drove the prices over the opening
price and the rally continued all day ending with a
closing price equal to the high of the day. Hence the
bulls were very strong during the day except the initial
phase of the session. The bull strength caused some
concern among the bears leading them to cover their
short positions thus adding fuel to the rally.
Important Factors:
What a White Closing Marubozu says about the future
course of the prices depends a lot on the general picture
just as in the case of White Marubozu. White Closing
Marubozu can possibly be the first part of a bullish
continuation pattern or it may also be interpreted as
a bearish reversal candlestick pattern depending on
the preceding day's candlesticks.
The White Closing Marubozu is a single candlestick
pattern with low reliability. It only reflects one day's
trading and it may show the continuation of the trend
but it may also indicate reversal. It needs to be used
with other candlesticks for a better and healthier judgment
about the status of the trend.
