I just realized something quite interesting about how professional traders use marubozu candles to read market sentiment. Today, I want to share with you this analytical tool.

A marubozu candle is one of the simple yet highly effective candlestick patterns. Its distinctive feature is that it has almost no upper or lower shadow, meaning the opening and closing prices represent the extremes of that time period. This indicates that the market is completely controlled by either buyers or sellers.

There are two main types. The first is a bullish marubozu, opening at the lowest price and closing at the highest price. This shows that buyers have dominance from start to finish during the period. It often appears at the beginning of an uptrend or as a confirmation of continued upward movement. The second is a bearish marubozu, opening at the highest price and closing at the lowest price. This signals that sellers are in full control, often indicating strong selling pressure.

Why is it important in trading? A marubozu candle tells you who is winning in the market. The longer the body, the stronger the momentum. Traders often use it at key support or resistance levels to decide when to enter or exit positions. Combining it with trading volume can significantly increase its reliability.

There are some practical tips. A bullish marubozu after a small consolidation phase can signal a strong breakout is coming. Conversely, a bearish marubozu at the top of an uptrend may warn of a sharp correction. Overall, marubozu candles are like a loud shout of momentum from the market, clearly showing which side is winning.

Looking at the main pairs currently, XRP is at $1.45 with a 1.83% increase in 24 hours. BNB continues strong at $656.80, up 3.99%. BTC remains healthy at $82.29k, up 0.93%. You might try applying marubozu analysis on these pairs to see how the current market momentum looks.