Marubozu
A marubozu is a candle with a full body and no wicks, showing total control by buyers or sellers. Learn the types, what they signal and how to trade them.
A marubozu is a candle with a full body and no wicks, or almost none. A bullish marubozu opens at its low and closes at its high. A bearish marubozu opens at its high and closes at its low. The name comes from a Japanese word meaning close cropped or bald, because the candle has no shadows. It shows that one side controlled the entire period, from the first trade to the last.
Types of marubozu#
| Type | Description |
|---|---|
| Full marubozu | No wicks at either end |
| Opening marubozu | No wick at the open end; a small wick at the close end |
| Closing marubozu | No wick at the close end; a small wick at the open end |
A closing marubozu, which closes exactly at its extreme, is often considered the strongest, because the side in control was still pushing at the very end of the period.
What it means#
A bullish marubozu says buyers took control immediately and never let go; sellers could not push price below the open at any point, and buyers were still active at the close. A bearish marubozu shows the same dominance by sellers. Marubozu candles often appear at the start of strong moves, at breakouts and during news driven trends.
Context changes the meaning#
| Location | Common interpretation |
|---|---|
| Breaking out of a range | Strong start of a new move |
| In the direction of the trend after a pullback | Trend resuming with force |
| After a long, extended trend | Possible climax; late buyers or sellers piling in |
| Against the trend at a key level | Possible reversal signal |
As with all strong candles, very large marubozu candles late in a trend can mark exhaustion rather than continuation. See Momentum Candles.
Marubozu in different markets#
- Stocks on daily charts: true marubozu are relatively uncommon and stand out.
- 24 hour markets: on low timeframes in crypto and forex, small candles with no wicks occur frequently and carry little meaning. Focus on large marubozu relative to recent candles.
- Smart money concepts: a large marubozu that breaks structure is a classic example of displacement and often leaves a fair value gap. See Displacement and Fair Value Gaps.
Trading the marubozu#
- Check size: the body should be large compared with recent candles, not just wickless.
- Check location: a range break or trend resumption is the strongest context.
- Entry: on the next candle's break of the marubozu's extreme, or on a pullback into its body, often to its midpoint.
- Stop: beyond the marubozu's opposite end, or below its midpoint for a tighter stop.
- Target: the next opposing level or a measured move based on the range broken.
Common mistakes#
- Chasing the close of a huge marubozu with a stop far away.
- Ignoring tiny wickless candles' insignificance on low timeframes.
- Missing exhaustion signals after long trends.
Frequently asked questions#
What is a marubozu candle?#
A candle with a full body and no wicks, where the open and close are the period's extremes, showing complete control by buyers or sellers.
Is a bullish marubozu a buy signal?#
It shows strong buying, but context matters. At a breakout it can start a move; late in a trend it can mark exhaustion. Many traders wait for a pullback.
How is a marubozu different from a momentum candle?#
A marubozu is an extreme momentum candle with no wicks at all. Momentum candles can have small wicks.
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