Definition:
It is a White Opening Marubozu following a black body.
During an uptrend, after we see a black candlestick
in the first day, the market gaps up sharply higher
when it opens with an opening price equal to the prior
session’s opening and it also closes the day at
a higher level.
Recognition Criteria:
1. Market is characterized by an uptrend.
2. We see a long black candlestick in the first day.
3. Then we see that the second day has the same opening
price as the first day, or extremely close to it.
4. The second day pattern is a White Opening Marubozu.
Explanation:
During an uptrend, a black real body (especially a
relatively long one) is a matter of concern for longs.
It may indicate that the bears may be gaining control.
However, if the next day opens with a gap such that
the second day opening price is equal to the previous
black day’s opening price, it shows that the bears
lost control of the market. If this white candlestick
also closes at a higher level, it tells us the bulls
have regained control and the uptrend will continue.
Important Factors:
The second pattern must be a White Opening Marubozu.
A third day confirmation is required to be sure that
the rally continues. This confirmation may be in the
form of a white candlestick, a large gap up or a higher
close on the next trading day (on the third day).
