What it looks like
A long body, clearly bigger than recent candles, with little or no wick at either end. Bullish: opens at the low, closes at the high. Bearish: opens at the high, closes at the low.
What it means
One side was in charge from start to finish with no fight back. That is real pressure, and it often carries on for a few candles. The risk is location: at the end of a long run it is often the last push.
Bullish and bearish versions
How to trade it
- 1
Check location: only use it early in a move, not after a long run.
- 2
Wait for a small pullback into the candle rather than buying or selling its close.
- 3
Enter on the pullback in the marubozu's direction, with a stop beyond its far end (below the low for bullish, above the high for bearish).
- 4
Target: 2 times the stop, or the next swing level.
- 5
Example: a bullish marubozu on US30 15 minute runs 80 points just after a range breaks. Price dips 25 points back into it; you buy with the stop below its low and aim for twice that risk.
A close back below the middle of a bullish marubozu, or back above the middle of a bearish one.
Where it works best
Breaking out of a range or away from a floor or ceiling, near the start of a move, often at a session open.
WickSpeak finds the marubozu automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, so you never have to guess the rule. In Playbook you can use the marubozu, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your costs.
Common mistakes
- Chasing it at the close after a long run.
- Waiting for a pullback that never comes, then chasing late anyway.
- Ignoring the middle of the candle, which is the line that cancels it.
Related patterns
Questions traders ask
Is a marubozu bullish or bearish?
Either. An up marubozu shows buyers in charge, a down one shows sellers in charge. It is read as a continuation of pressure, not a turn.
Should I buy at the close of a bullish marubozu?
Usually not. We wait for a small pullback, because buying the close puts the stop far away and late in a move it is often the last push.
What does marubozu mean?
It is a Japanese term often translated as close-cropped, describing a candle with its wicks shaved off.
What cancels a marubozu?
A close back past its middle: below the middle for a bullish one, above the middle for a bearish one.