The candles of the pattern are ringed. An invented chart, drawn to show the shape. Not market data.
Also searched asmarubozu candle · bullish marubozu · bearish marubozu · no wick candle · full body candle
How to recognise a marubozu
- A long body, long in comparison with the candles around it.
- No wick at either end, or wicks so short they are hard to see.
- Rising or falling: both exist, and they mean opposite things.
What it is taken to mean
It is read as one side in control from the first trade to the last: buyers in a rising marubozu, sellers in a falling one. Traders take it as strength in that direction, and note that the period ended at its extreme.
What traders check next
- Where it sits. At the start of a move out of a quiet range it is read one way; after a long run in the same direction, as possible exhaustion.
- What caused it. A scheduled release can produce one in minutes, and the next candle often gives part of it back.
- How far the price now is from any place a stop would make sense.
Where people go wrong
- Chasing it. A long candle that closes at its extreme leaves the latecomer the worst price of the period.
- Insisting on a perfect one. A wick of a fraction of a pip does not change what happened.
- Reading a single candle as a trend. It is one period.
Questions people ask
- Does a marubozu have to have no wicks at all?
- Strictly, yes. In practice a very short wick at one end is accepted, and some books give those their own names.
- Does a bullish marubozu mean the price will keep rising?
- No. It describes what buyers and sellers did during those candles. Studies of candlestick patterns find that, taken alone, they predict the next move only a little better than chance, if at all. It is one observation to weigh with others.
The words on this page
An explanation for study. It is not advice, a recommendation or a forecast, and a pattern or a situation described here says nothing certain about what a price will do next.