Closing Maribozu candles.

This type of candle is one of the most common on candle charts; they can indicate either the continuation of a trend or be a signal for its reversal, it all depends on the appearance and combination in which it appears.

Maribozu - translated as “Cut”, this means that the closure of this timeframe occurred at a price greater than the maximum or less than the minimum, depending on the direction of the trend.

It is clear that there are two types of Maribozu - black and white.

Black Maribozu - appears during a downward trend, most often it reports the continuation of the trend, since the closing of the candle was below the existing minimum.

The candle is considered quite weak and drawing conclusions based only on its appearance is risky. White Maribozu - unlike black Maribozu, white is a stronger candle; when it appears, the daily high is below the closing price. This fact indicates that the existing upward trend is likely to continue its movement.

If the Maribozu candle appeared in a trend opposite to it in direction, this most likely indicates a high probability of a reversal.

Maribozu candles come in different types, and depending on this they characterize the trend ; the article discusses Maribozu closings.

If you are using the MetaTrader 4 terminal, the bearish candle is white and the bullish candle is black, that is, vice versa.