What Is Marubozu Candle?
In technical analysis, Marubozu candle is a powerful candlestick pattern that indicates strong momentum in a particular direction. The term Marubozu means "bald" or "shaved head" in Japanese, reflecting a candle with no shadows or wicks.
A Marubozu candle has a long body and no upper or lower wick, showing that the price moved strongly in one direction from open to close without any reversal during the session.
Types of Marubozu Candle Pattern
There are two main types of Marubozu candle patterns:
1. Bullish Marubozu
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Open = Low, Close = High
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Indicates strong buying pressure
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Signals a potential uptrend or continuation of bullish sentiment
2. Bearish Marubozu
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Open = High, Close = Low
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Indicates strong selling pressure
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Suggests a potential downtrend or bearish continuation
Significance of Marubozu Candle in Trading
Understanding the Marubozu candle pattern can help traders:
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Identify market momentum
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Confirm trend reversals or continuations
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Make better entry and exit decisions
Pro Tip:
Always combine Marubozu candles with other indicators like support/resistance, volume, and moving averages for more accurate analysis.
How to Trade with Marubozu Candle Pattern
Here’s how traders often use Marubozu candle patterns in real trades:
Bullish Marubozu:
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Entry: Buy at the close of the candle or on the next candle
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Stop-loss: Below the low of the Marubozu
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Target: Based on resistance or risk-reward ratio
Bearish Marubozu:
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Entry: Sell/short at the close of the candle or on the next candle
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Stop-loss: Above the high of the Marubozu
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Target: Based on support levels
Conclusion
If you're wondering what is Marubozu candle, it's a clear sign of decisive market behavior. The Marubozu candle pattern is one of the most straightforward tools in candlestick charting, helping traders assess market strength at a glance. Whether bullish or bearish, it delivers valuable insights into trader sentiment and market direction.
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