What is Marubozu candlestick pattern? Learn how to recognize bullish and bearish marubozu candlestick

Do you want to know how to trade the Marubozu Candlestick pattern? Watch our latest video and see how Marubozu candle looks like.

Marubozu candlestick pattern – a glimpse in what is going on

Hello, traders! Today we are going to review one of the most basic Candlestick patterns out there, not so much known about, but extremely easy to spot on, and it’s only a one candle pattern, which means that it has a very clear meaning. You don’t really have to correlate it to other candlesticks before or after, but one candle itself gives you a glimpse in what is going on.

So, Marubozu Candlestick pattern, or in Japanese, it means a shaved head, and you’ll see later why. It is, as I said, an easy-to-spot signal that comes in both versions, it gets in both the red one and the green one, both the bullish one and the bearish one. So, let’s speak about the formation. So, first, the single candle that we are talking about must have a long, real body. In addition to that, there must be no upper weak or lower weak. And look at this candle here, the red candle. So, we are talking here only about the body. The body that has a weak leg. For example, this one, you see, it has a really long body, but there is a small lower weak, it’s not Marubozu candle. The Marubozu candle is the one, like this one, or this one also has a weak, but, here, look, we are talking about 0.2 pips or something. So, of course, sometimes you have to compromise a bit. We are talking about a full body Candlestick pattern. For example, look at this one. This a Marubozu. Obviously, this happened overnight with a very low volume, but no weaks, no up and down weaks. So, more or less, that’s it when it comes to the Candlestick formation.

So, what does it mean? I have prepared a couple of charts. So, first of all, when you see a long, long bearish candle, like this is the Marubozu bearish candle, at the bottom of the trend, it means that probably the trend is going to resume. Of course, nothing happens vertically in Forex, so we don’t know if the trend is going to resume immediately, or is going to have a correction and then go down, but more or less, this candle tells you that the downtrend is still intact, and more importantly, the downward pressure is still very high, and the bulls are struggling to get anything out of this market. Why? Well, just look at the candle itself. The candle opens at one price, then pushes down and closes at the low, there is no weak. So, unlike, for example, this red candle here, that I’m showing you, it pushes down, it goes all the way to here, but then retraces a bit, in this case, six or seven pips, and then closes. So, at least bulls are showing some fight. Here, in Marubozu candle, in this case, in the bearish case, we open at the high, we close at the low. It’s a very bearish signal, as you can also here, after the Marubozu here, we create new low, new low and then, again, later, afterwards, new low. They’re very, very common in strong trends.

So, here, you have a very strong downtrend, in the Euro/Dollar, look at this move in the Euro/Dollar, it’s a 700 pips move, almost no correction, and then you have Marubozu candle, you have one here, you have, look at the one here, that I highlighted, look, absolutely no weak, upside or downside, it just continues to grind lower, and then, again, here, you have a small correction, and again, Marubozu, which indicates that we’re going to continue, another Marubozu here, we continue to go lower, so what is a great thing about this, and the most important thing about this pattern is that it gives you a signal that the trend is still intact. This is a bearish trend. Look at the strong or the bullish Marubozu in the Dollar/CAD. We have one Marubozu after the correction, which gives us an information that we are going to continue higher, then another Marubozu, look, strong, healthy long candle. We continue higher, then another one, we continue higher. So, more or less, when you analyze a price chart and especially when you look at the big trends, strong trends to the downside or to the upside, you look at the candlesticks. When you see candlesticks, with repeated Marubozu, it means that the trend is strong and you look at here, one, two, three. There is only one way where the price is going to go, that’s to the upside, because the price continuously opens at one spot and then closes at the top of the candlestick, more or less, no weaks attached to the body of the candle, and again, this is one of the best signals to be given to you, whether we are in a strong uptrend or downtrend. Look at the, again, at the chart that I showed you here. We just continue to grind lower, lower, lower. When we stop creating these Marubozu candles, when we have more weaks there is more fight in bulls, then we may see a correction in this market.