What is the Marubozu candlestick pattern?

The Marubozu candlestick pattern is formed by a single candlestick. This candlestick pattern only has the body and the size of the wicks or shadow is negligible, a perfect Marubozu pattern has no upper or lower shadow. It is of two types - the bullish and the bearish.

It's a strong indication of trend reversal or continuation depending on where it appears.

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How to identify the Marubozu pattern?

The single candle should have a long real body.
No upper or lower wick (a.k.a., a shadow).

What is the Story(Sentiments) behind it?

When you see a Marubozu candlestick, it tells us the story of the session or a summary of that particular period. In a bullish Marubozu, the buyers maintained control of the price throughout the day, from the opening bell to the closing. In a bearish Marubozu, the sellers controlled the price from the opening bell to the closing.

Bullish Marubozu candlestick

A bullish Marubozu points out that the market participants were willing to buy the stock at every price point during that session.

A bullish Marubozu in an uptrend indicates trend continuation and in a downtrend, it indicates a trend reversal.

Bearish Marubozu candlestick

A bearish Marubozu points out that the market participants were willing to sell the stock at every price point during that session.

A bearish Marubozu in a downtrend indicates trend continuation and in an uptrend, it indicates a trend reversal.

How to trade the Marubozu Candlestick pattern?

NOTES:

One single candlestick can't decide the future of the market, so make sure you watch other signals as well.
Make sure you trade in the direction of the trend.
Make sure you follow the Support and Resistance levels.
Avoid trading extremely small or long Marubozu candlesticks, abnormal candle lengths should not be traded.
Place your stop loss at the beginning of that Marubozu candlestick.

How to trade breakout with the Marubozu pattern;

Trade in the direction of the trend.
Draw potential support or the resistance level.
Wait for the market to break support or the resistance level with the Marubozu candlestick. In an uptrend wait for the market to break the above potential resistance level with a bullish Marubozu candlestick. In a downtrend wait for the market to break the support level with a bearish Marubozu candlestick.
Wait for some retracement and with the first confirmation according to your strategy, place your trade in the trend direction.
Place your stop loss at the beginning of that Marubozu candlestick.

Bullish Marubozu breakout

Bearish Marubozu breakout


Bullish Marubozu trend trading

Bearish trend trading


Marubozu trading

How to trade Retracement with the Marubozu pattern;

Trade in the direction of the trend.
Draw potential support or the resistance level.
Wait for the market to start retracing back to the previous support or resistance level.
When the market is near our previously confirmed support or resistance level, wait for the formation of a good Marubozu candlestick pattern.
Place your trade in the trend direction as soon as you see a Marubozu pattern formation.
Place your stop loss at the beginning of that Marubozu candlestick pattern.


Retracement Marubozu trading

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