Bearish Marubozu Candlestick

Bearish marubozu candlestick patterns appears on chart when Open = High, and Close = Low. Similar to bullish this can appear anytime on chart, which may lead to significant change in upcoming direction or trend of the stock. The upper or lower shadows can vary a little bit.

Bearish marubozu occurs due to high selling pressure from the participants. One can short the positions while seeing this kind of pattern appearing. let us see few example for bearish marubozu candle.

Bearish marubozu(red) candlestick pattern

Above is 30 minutes ICICI BANK Ltd. of may,2020. This a unique chart as you can see, both the candles here, when the bullish marubozu appear, there was quick rally, keep in mind its 30 minutes charts not day, so the thing have happened within that time frame.

Now as a intraday trader this was the best opportunity to have some quick bucks. Similarly the red candle which is bearish marubozu shows, one could have easily short and earned some handsome money, that too on the same day. As said keeping the stop-loss is very vital , i have already informed where to keep the stop-losses.

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