Marubozu
Overview
A marubozu is a candle with no wicks (or very small wicks) — the open and close are at the extreme ends. A bullish marubozu opens at low, closes at high. A bearish marubozu opens at high, closes at low. Marubozus represent maximum conviction and can signal the start of a strong momentum move.
Key Concepts
No wicks or extremely small wicks, Full control by buyers (bullish) or sellers (bearish), Often represents breakout moves, Volume should be elevated
Entry Signals
Marubozu breaking through key resistance/support, Marubozu occurring on high volume, Opening marubozu (wick only on opening side) at trend continuation points
Exit Signals
On bullish marubozu: stop at 50% of the candle's range, hold for continuation. On bearish: inverse. Watch for immediate follow-through.
Best Timeframes
All timeframes, best on 1H+
Pro Tips
A marubozu that also breaks a consolidation range or trendline is an extremely strong signal. The absence of wicks means there was no meaningful opposition.
More Topics in This Category
Continuation Triangles
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.
Three-Line Strike Patterns
The three-line strike is a four-candle pattern where three consecutive candles move in one direction, followed by a single large candle that engulfs all three. Despite appearing as a reversal, statistical analysis shows the bullish three-line strike actually has a high probability of continuing the prior uptrend, making it a continuation signal. The bearish variant behaves similarly as a continuation of the downtrend.
Harami Patterns
A harami (Japanese for 'pregnant') is a two-candle pattern where a small candle is completely contained within the prior candle's body. A bullish harami appears in downtrends; a bearish harami in uptrends. Haramis signal fading momentum but require confirmation before trading.
Inside Bars
An inside bar is a candle completely contained within the range (high to low) of the previous candle. It represents a contraction of volatility and indecision. Inside bars are used as breakout setups — traders wait for price to break above or below the inside bar's range (or the 'mother bar' range) to enter.