Marubozu
A Marubozu — Japanese for “bald” or “shaven” — is a candlestick with a long body and no upper or lower shadows. It means the open is at one extreme and the close is at the other, indicating overwhelming dominance by either buyers (bullish Marubozu, green) or sellers (bearish Marubozu, red) for the entire session. Indian traders treat Marubozu candles as strong continuation or breakout signals.
Key takeaways:
- Long body with no upper or lower shadow.
- Bullish (green) Marubozu = open is the low, close is the high.
- Bearish (red) Marubozu = open is the high, close is the low.
- Confirms strong directional conviction.
- Best used as a trend continuation or breakout signal.
Anatomy of a Marubozu
- No upper shadow — high equals close (for bullish) or open (for bearish).
- No lower shadow — low equals open (for bullish) or close (for bearish).
- Long body — the wider the body, the stronger the signal.
- Forms in a single trading session.
What it signals
Bullish Marubozu candles signal sustained buying interest from the open to the close — typical of breakouts or strong trend days. Bearish Marubozu candles signal sustained selling pressure. The absence of wicks indicates that there was no counter-action; the dominant side held the reins throughout the day.
Trading Marubozu candles
- Identify the candle in the context of price structure — at a breakout, within an established trend, or near a key level.
- Enter in the direction of the Marubozu, ideally on a small pullback the following session.
- Use the candle’s opposite extreme as a stop reference.
- Target the next support/resistance level or use measured moves.
Marubozu near important levels
A bullish Marubozu that breaks above a long-held resistance line is one of the most actionable continuation signals in technical analysis. Likewise, a bearish Marubozu that closes below a major support level is a high-conviction breakdown trigger. Combine with volume confirmation for the strongest signals.
Variations
- Closing Marubozu: No shadow on the closing side; small shadow on the opening side.
- Opening Marubozu: No shadow on the opening side; small shadow on the closing side.
- Full Marubozu: No shadows at all.
Common pitfalls
Not every Marubozu leads to follow-through. Marubozu candles in low-liquidity stocks can be misleading. Always confirm with volume and broader market context. Avoid chasing a Marubozu without considering how far the move has already gone — late-stage Marubozus can be exhaustion signals rather than continuation cues.
Frequently asked questions
Is a Marubozu always a continuation signal?
Most often yes, but very late-stage Marubozu candles can be exhaustion signals.
Does the color matter?
Yes — green for bullish, red for bearish.
Can Marubozu candles appear intraday?
Yes, especially on news-driven sessions. Reliability is highest on daily and weekly charts.
Should I always trade in the direction of the Marubozu?
Generally yes, with stops at the opposite extreme. Always check broader context.
