📉 Marubozu Candlestick Pattern Explained
Marubozu is a powerful single candlestick pattern in technical analysis, commonly used by traders to identify strong momentum and potential trend direction. The term "Marubozu" is derived from Japanese, meaning "bald" or "shaved head", indicating a candlestick with no wicks (shadows) on either end.
🔍 What is a Marubozu Candlestick?
A Marubozu candle shows strong buying or selling pressure with no upper or lower shadow. This means the opening and closing prices are also the high and low for the time period.
There are two types of Marubozu:
- 🔴 Bearish Marubozu: Opens at the high and closes at the low — indicates strong selling pressure.
- 🟢 Bullish Marubozu: Opens at the low and closes at the high — indicates strong buying pressure.
📘 Structure of Marubozu Candlestick
| Type | Open | Close | Shadow | Signal |
|---|---|---|---|---|
| Bullish Marubozu | Low of the day | High of the day | No shadows | Strong upward trend |
| Bearish Marubozu | High of the day | Low of the day | No shadows | Strong downward trend |
📊 Example on Chart
Let’s understand it with a real data example:
- Bullish Marubozu: Open: ₹150, Close: ₹180, High: ₹180, Low: ₹150
- Bearish Marubozu: Open: ₹180, Close: ₹150, High: ₹180, Low: ₹150
As seen above, there are no shadows (wicks). Price opened and closed at extreme points.
📈 What Does It Indicate?
- Bullish Marubozu: Indicates buyers are in control — a potential start of an uptrend or continuation.
- Bearish Marubozu: Indicates sellers are in control — signals downtrend continuation or reversal.
📌 Important Points to Remember
- Marubozu alone is not always reliable — use with volume, support/resistance, or other indicators.
- More effective in higher timeframes like Daily or Weekly charts.
- Can appear at reversal or continuation points.
✅ How to Trade Using Marubozu
- For Bullish Marubozu: Enter long (buy) position near close or on next candle if confirmed.
- For Bearish Marubozu: Consider short (sell) position after confirmation from next candle.
- Always set stop-loss below/above the candle to manage risk.
📷 Marubozu Candlestick Pattern Diagram
🎯 Conclusion
Marubozu candlestick patterns are strong indicators of market momentum. Whether bullish or bearish, they represent clear control by either buyers or sellers. However, it is essential to confirm signals with other tools and price action before placing trades.
