Chloe Adams
Candlestick charts are an important aspect of trading stocks, commodities, forex, or cryptocurrency. They showcase pricing-related data, divided into two aspects: the thin line reflecting price ranges and the body spotlighting the gap between opening and closing prices. Webull is a relatively new brokerage platform that offers candlestick charts. While it is recommended for intermediate and experienced investors, beginners can also benefit from it. Users can customize their charts on Webull by choosing between Hollow and Solid Candles, as well as selecting various indicators and time zones. However, there is no specific mention of Marubozu candles, a relatively unpopular candlestick pattern that indicates an asset's price opened at a high and closed at a low point or vice versa.
| Characteristics | Values |
|---|---|
| Definition | A candlestick with no wicks, resembling a block. |
| Origin | Developed in Japan centuries ago, where it was popular with rice traders. |
| Popularity | Relatively unpopular as it rarely forms. |
| Use case | Useful for day trading as it indicates a stock has been trading strongly in one direction (bullish or bearish). |
| Bullish Marubozu | Indicates that bulls are still strong and resisting pressure from short sellers, leading to a potential upward trend continuation. |
| Bearish Marubozu | Indicates that sellers control the stock price, suggesting a downward trend continuation. |
| Colour | The colours can vary depending on chart arrangement, but they typically represent the opening and closing prices. |
| Webull App | The Webull app offers candlestick charts, but it is unclear if it specifically includes Marubozu candles. |
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What You'll Learn
Candlestick charts on Webull
Candlestick charts are an important aspect of trading stocks, commodities, forex, or cryptocurrency. They are the most popular types of charts in the financial market, providing a vast amount of information. Webull is a commission-free, stock trading app that offers candlestick charts.
To access candlestick charts on the Webull app, you must first ensure that you are using the updated version. Then, follow these steps:
- Go to the stock page.
- Click on the profile icon on the top right corner of your screen.
- Pick preferred advanced quotes.
- Go back and enter settings.
- Open chart settings.
- Tick advanced charts.
You can also access your Webull chart settings by touching the upper right-hand corner of a reduced-size chart or the 'More' symbol on the bottom right-hand corner of a full-screen chart. Within the chart settings, you can choose between Hollow Candles and Solid Candles. Hollow candles indicate that a security moved higher after its open, while filled candles show that a security moved lower after the open.
Webull also offers other types of charts, such as daily bar charts, head and shoulders charts, and line charts. It is important to incorporate chart monitoring into your trading strategy to understand the market momentum and identify trending patterns.
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How to read Marubozu candles
Although I could not find explicit information on whether Webull has Marubozu candles, I can provide details on how to read Marubozu candles.
Marubozu candles are a type of candlestick chart that is used to analyse and predict financial market trends. The name "Marubozu" comes from the Japanese word for "bald", referring to the candle's lack of wicks or shadows. These candles offer a clear indication of market momentum and are characterised by a long candlestick body with little to no wicks, reflecting an intense trading session.
To identify a Marubozu pattern, focus on the opening and closing prices of the candle. A Marubozu forms when these prices are very close to the session's high or low price, indicating a dominant market direction without significant retracement. The length of the candle body is also significant, as it represents the buying or selling pressure during that period.
There are two types of Marubozu candles: bullish and bearish. A bullish Marubozu is typically white or green and indicates increased buying interest in an asset. In this pattern, the low price is equal to the opening price, and the high price is equivalent to the closing price. When a bullish Marubozu appears in an uptrend, it suggests a continuation of the positive trend. However, when it appears in a downtrend, it signals a trend reversal, indicating a change in market sentiment.
On the other hand, a bearish Marubozu indicates extreme bearishness in the market. In this pattern, the high price is equal to the opening price, while the low price is equivalent to the closing price. It is important to note that when trading with Marubozu candles, it is generally recommended to wait for another confirmation candle before entering a trade to ensure a more informed decision.
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Hollow vs. solid candles
Hollow and solid candles are two types of candlestick charts used in technical analysis to visualize price movements in financial markets. They are visually similar but differ in how they represent price action.
A hollow candlestick indicates that a security moved higher after its open, reflecting strength. The current candlestick's close is greater than the current candlestick's open. Hollow candles are typically represented in green or white, indicating a bullish sentiment.
On the other hand, a solid candlestick indicates that a security moved lower after the open, reflecting weakness. The current candlestick's close is less than the current candlestick's open. Solid candles are usually red or black, indicating a bearish sentiment.
Hollow candles also take into account the previous time period, giving traders an additional layer of information. They provide a clearer indication of the market's momentum and can help identify key levels of support and resistance.
Solid candles, while potentially easier on the eyes for some people, may not provide the same level of visibility as hollow candles, especially when using multiple overlapping indicators.
Webull offers the option to use both hollow and solid candlestick charts on its platform. Users can access these settings by clicking on the "More" symbol or touching the upper right-hand corner of the chart. Additionally, on the mobile app, users can choose between a line and a candlestick chart.
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Bullish vs. bearish Marubozu
Candlesticks are an important aspect of trading stocks, commodities, forex, or cryptocurrency. Webull offers both line and candlestick charts on its mobile app.
A Marubozu candlestick pattern signals a robust market sentiment, either bullish or bearish. A bullish Marubozu is a white or green candlestick with a large body and no or very small shadows. It indicates that buyers control the market, and the uptrend is likely to continue. Conversely, a Bearish Marubozu pattern is identified by a long red or black candlestick with no upper or lower shadows. When you spot this pattern, it's a sign that sellers are in control and driving the market downwards with significant force.
The Marubozu pattern is characterised by its long candle with a large body and no or very short shadows. There are three types of Marubozu candlesticks: the Opening Marubozu, the Closing Marubozu, and the standard Marubozu. The Opening Marubozu is unique as it captures significant market movements right from the start of the trading session. It is identified by its opening price, which is the low for a bullish Marubozu or the high for a bearish one. This indicates a strong trend from the outset and provides early insight into the potential market direction. The Closing Marubozu, on the other hand, is identified by its closing price being the high for a bullish pattern or the low for a bearish one. It signals a solid sentiment carried through to the close, indicating a potential trend continuation or reversal.
Traders use various strategies to trade Marubozu candlestick patterns, such as combining them with other indicators like the 50-day Exponential Moving Average (50 EMA) to confirm the trend and dynamic support and resistance levels. Additionally, the Marubozu patterns are more reliable under certain conditions. For example, a bullish Marubozu pattern is more reliable if it coincides with the price breaking above a key resistance level, while a bearish Marubozu pattern is more accurate when the price breaks below a support level.
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Other types of Webull charts
Webull is a relatively new brokerage platform founded in 2017. It offers a range of charts and analysis tools to help investors make informed trading decisions. While candlestick charts are a popular option, Webull provides several other types of charts for users to choose from. These include:
Line Charts
Line charts are simple and easy to understand. They connect closing prices over a specified time interval, forming a continuous line. On Webull, the line is usually coloured green or red, indicating whether the price has risen or fallen during that time frame. Line charts provide a quick overview of overall price movements.
Bar Charts
Bar charts, also known as OHLC (opening, high, low, and closing) charts, consist of vertical and horizontal lines representing price movements for a specific period. They provide more information than line charts, including the opening and closing prices, as well as the highest and lowest prices during the interval. The colour of the bar indicates market sentiment, with green representing a positive trend and red indicating a negative one.
Head and Shoulders Charts
Head and shoulders charts are a visual pattern where the top of the chart signals that an upward trend has peaked and may reverse, while the bottom indicates a reversing downward trend.
Mountain Charts
Mountain charts are another option, although they provide less information than candlestick charts. Users can add up to 10 sub-chart indications to gain additional insights.
Webull offers advanced charting tools, such as Trendline & Fibonacci Retracement, to help users identify trends, analyse price fluctuations, and make data-driven decisions. Users can also customise their charts by adjusting colours, heights, time intervals, and indicators.
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Frequently asked questions
Marubozu candles are candlesticks without a wick or shadow, resembling a block. The word 'Marubozu' is Japanese for 'bald head' or 'shaved head'. This candlestick pattern indicates that an asset's price opened at a high and closed at a low point or vice versa.
Webull offers the option to display candlesticks on its charts. While I cannot confirm if these include Marubozu candles, the platform allows users to customise their charts with various indicators and settings.
To change your chart to a candlestick chart on Webull, ensure you are using the updated version of the app. Go to the stock page and click on the profile icon in the top right corner. Select 'advanced quotes', then go back and enter settings. Open chart settings and tick 'advanced charts'. You can now select your preferred chart type.
Webull offers Hollow and Solid candles. Hollow candles indicate that a security moved higher after opening, while Solid candles show that a security moved lower after opening.
