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Black Closing Marubozu

In case of Black Closing Marubozu,the close price is the lowest price of that underlying stock for that session,however open price is not the highest price.

This means that, there were many market participants ready to sell the underlying stock at any price during the session and due to this high supply the price kept on decreasing and closed at the lowest point for that session, however during this session there was a time when buyer emerged and price shoot up above the open price for a brief moment but sellers took control eventually.

If you think for a moment, Black Closing Marubozu feels stronger than Bearish Marubozu. Reason being even though buyers tried to push price up ,sellers still able to close at the lowest price point during the session.

Decision: In case of Black Closing Marubozu, traders should start looking for selling opportunities, sell price should be around the closing price of Black Closing Marubozu.

Stop loss: What if the market reverse its direction after printing the Black Closing Marubozu ? The high of the candle will act as stop-loss in case that happen.

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