The white marubozu candlestick pattern is a long white body with no shadow on either end and is an extremely strong pattern when you consider how it is formed during stock analysis. It opens on the low and immediately heads up. It continues upward until it closes, on its high. Counter to the black marubozu, used in Japanese candlesticks, it is often the first part of a bullish continuation pattern or bearish reversal pattern. It is called a Major Yang or Marubozu of Yang during stock analysis with candlestick charts.
The white marubozu candlestick pattern signifies the formation of positive sentiment which makes the price continue to rise from opening until closing. It is then that the lowest price is equivalent to the opening price and the highest price is equivalent to the closing price.
When the white marubozu occurs during stock analysis, it signifies that the day consisted of aggressive buying wherein the buyers were in control. This indicates that buying could continue to occur the following day as well. Furthermore, if over the next few days the price does not dip below the low of the marubozu that you previously used for the buy signal, then some might say that this indicates that the buy signal is indeed legitimate.
Japanese Candlestick trading signals consist of approximately 40 reversal and continuation patterns used in stock analysis. All candlestick patterns have credible probabilities of indicating correct future direction of a price move. The shooting star candlestick is one of the 12 major patterns used in candlestick charting. The definition of “major” has two functions. Major in the sense that they occur in price movements often enough to be beneficial in producing a ready supply of profitable trades. They also clearly indicate price reversals with strength enough to warrant placing trades.
Continue to learn more about the major candlestick signals and read about the Inverted Hammer signal that is used in stock analysis and other types of analysis.