A Marubozu is a long or tall Japanese candlestick with no upper or lower shadow (or wick).
It basically looks like a vertical rectangle.
To identify a Marubozu candlestick pattern, look for the following criteria:
- The single candle involved in the signal should have a long body.
- There must not be an upper or a lower shadow (or wick).
- The candle can be white/green or black/red, and it can appear anywhere on the chart.
- A white/green Marubozu moves upward and is very bullish.
- A black/red Marubozu moves downward and is very bearish.
- The longer the candle is, the stronger the price move.
The word marubozu means “bald head” or “shaved head” in Japanese, and this is reflected in the candlestick’s lack of shadows.
When you see a Marubozu candlestick, the fact that there are no shadows tells you that the session opened at the highest price and closed at the lowest price of the day.
In a bullish Marubozu, the buyers maintained control of the price throughout the session, from the opening to the close.
In a bearish Marubozu, the sellers controlled the price from the opening to the close.
To better analyze a specific Marubozu, observe the following:
- If a White Marubozu occurs at the end of an uptrend, a continuation is likely.
- If a White Marubozu occurs at the end of a downtrend, a reversal is likely.
- If a Black Marubozu occurs at the end of a downtrend, a continuation is likely.
- If a Black Marubozu occurs at the end of an uptrend, a reversal is likely.