{"id":36201,"date":"2022-12-14T11:30:46","date_gmt":"2022-12-14T11:30:46","guid":{"rendered":"https://www.5paisa.com/finschool/?p=36201"},"modified":"2025-06-04T17:41:04","modified_gmt":"2025-06-04T12:11:04","slug":"marubozu-candlestick-pattern","status":"publish","type":"post","link":"https://www.5paisa.com/finschool/marubozu-candlestick-pattern/","title":{"rendered":"What is Marubozu Candlestick Pattern: Meaning \u0026#038; Examples"},"content":{"rendered":"\u003cdiv data-elementor-type=\u0022wp-post\u0022 data-elementor-id=\u002236201\u0022 class=\u0022elementor elementor-36201\u0022\u003e\u003csection class=\u0022elementor-section elementor-top-section elementor-element elementor-element-993586f elementor-section-boxed elementor-section-height-default elementor-section-height-default\u0022 data-id=\u0022993586f\u0022 data-element_type=\u0022section\u0022\u003e\u003cdiv class=\u0022elementor-container elementor-column-gap-default\u0022\u003e\u003cdiv class=\u0022elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-09a8c58\u0022 data-id=\u002209a8c58\u0022 data-element_type=\u0022column\u0022\u003e\u003cdiv class=\u0022elementor-widget-wrap elementor-element-populated\u0022\u003e\u003cdiv class=\u0022elementor-element elementor-element-a7ab6e6 elementor-drop-cap-yes elementor-drop-cap-view-default elementor-widget elementor-widget-text-editor\u0022 data-id=\u0022a7ab6e6\u0022 data-element_type=\u0022widget\u0022 data-settings=\u0022{\u0026quot;drop_cap\u0026quot;:\u0026quot;yes\u0026quot;}\u0022 data-widget_type=\u0022text-editor.default\u0022\u003e\u003cdiv class=\u0022elementor-widget-container\u0022\u003e\u003ch2\u003e\u003cstrong\u003eWhat Is Marubozu Candlestick Pattern?\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eMarubozu is a Japanese word that translates to \u0026#8220;Bald\u0026#8221;.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eAs a candlestick without an upper or lower shadow, Marubozu. A Marubozu candlestick has a large, lengthy body and hardly any shadows, making it difficult to miss. This sturdy body denotes a powerful movement in either an upward or downward direction. When a bullish (green/white) Marubozu forms, it means that the price rose steadily from the time it opened until it closed, trying to rise even higher.\u003c/span\u003e\u003c/p\u003e\u003ch2\u003e\u003cstrong\u003eWhat is Marubozu Candlestick?\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg fetchpriority=\u0022high\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-36221 size-full\u0022 src=\u0022https://www.5paisa.com/hindi/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM.jpeg\u0022 alt=\u0022marubozu candlestick pattern\u0022 width=\u00221004\u0022 height=\u0022833\u0022 srcset=\u0022https://www.5paisa.com/hindi/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM.jpeg 1004w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM-300x249.jpeg 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM-768x637.jpeg 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM-50x41.jpeg 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM-100x83.jpeg 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.48-PM-150x124.jpeg 150w\u0022 sizes=\u0022(max-width: 1004px) 100vw, 1004px\u0022 /\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eThe \u003ca href=\u0022https://www.5paisa.com/hindi/finschool/marubozu-candlestick-pattern/\u0022\u003eMarubozu candlestick pattern\u003c/a\u003e is a single-candle formation that represents the market’s resolve to move mostly in one direction without significant resistance from the opposing side, forcing a closing at the session’s high or low.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eMarubozu comes in two varieties: bullish marubozu and bearish marubozu.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eRetaining some trading guidelines:\u003c/span\u003e\u003c/p\u003e\u003cul\u003e\u003cli style=\u0022font-weight: 400;\u0022 aria-level=\u00221\u0022\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eBuy power and sell fragility\u003c/span\u003e\u003c/li\u003e\u003cli style=\u0022font-weight: 400;\u0022 aria-level=\u00221\u0022\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eBe tolerant of conventions (verify and quantify)\u003c/span\u003e\u003c/li\u003e\u003cli style=\u0022font-weight: 400;\u0022 aria-level=\u00221\u0022\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eFind the previous trend\u003c/span\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eOnly the Marubozu candlestick pattern deviates from Rule 3: Look for Prior Trend.\u003c/span\u003e\u003c/p\u003e\u003ch2\u003e\u003cstrong\u003eHow to Identify Marubozu Candlestick Patterns?\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-36222 size-full\u0022 src=\u0022https://www.5paisa.com/hindi/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM.jpeg\u0022 alt=\u0022Trading with Bearish Marubozu\u0022 width=\u00221071\u0022 height=\u0022629\u0022 srcset=\u0022https://www.5paisa.com/hindi/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM.jpeg 1071w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-300x176.jpeg 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-1024x601.jpeg 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-768x451.jpeg 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-50x29.jpeg 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-100x59.jpeg 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-4.30.49-PM-150x88.jpeg 150w\u0022 sizes=\u0022(max-width: 1071px) 100vw, 1071px\u0022 /\u003e\u003c/p\u003e\u003ch4\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003e\u003cstrong\u003eBullish Marubozu:\u003c/strong\u003e Open = Low, Close = High\u003c/span\u003e\u003c/h4\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eA bullish marubozu shows that the stock has such strong buying demand that market players were willing to purchase it at every price point throughout the day, causing the stock to close to its day\u0026#8217;s high.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eRegardless of the previous trend, the behavior on marubozu day implies that the stock is now positive and that the sentiment has changed. It is anticipated that a rise in bullishness will follow this abrupt shift in sentiment and that this bullishness will last for the following few trading sessions.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eConsequently, a trader should consider purchasing chances when a bullish marubozu appears. The purchase price needs to be close to marubozu\u0026#8217;s closing price.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eBearish Marubozu: Rule: \u0026#8220;Open equals high, and close equals low\u0026#8221;\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eWhatever the past trend, the behavior on the marubozu day implies that the attitude has shifted and the stock is now bearish, regardless of the prior trend.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eInvestors should search for opportunities to short.\u003c/span\u003e\u003c/p\u003e\u003ch2\u003e\u003cstrong\u003eExample of How to Use a Marubozu Candlestick Pattern?\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eInterpretation: A Marubozu White Candle is a candlestick that does not have a shadow that extends from its candle body at either the open or the close. Marubozu is Japanese for “close-cropped” or “close-cut.” Other sources may call it a Bald or Shaven Head Candle. Here we can see that a bullish Marubozu is formed at 1820 INR and can see a huge buying interest in TCS so much so that it closed near its high point for the day and it continue for the next few sessions.\u003c/span\u003e\u003c/p\u003e\u003ch2\u003e\u003cstrong\u003eThe Risk-taker and risk-averse?\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eAround closing time on the same day, the risk-taker would have started a trade to acquire the shares, only to book a loss the next day.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eBecause the following day occurred to be a day with a red candle, the risk-averse investor would have refrained from purchasing the stock altogether.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eAccording to the rule, we should only buy on days with blue candles and sell on days with red candles.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eThe risk-averse trader would purchase the stock the day after the pattern has formed, or the following day.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eTo adhere to rule number 1, the trader must first confirm that the day is bullish before buying. As a result, the risk-averse buyer can only purchase the stock the following day. The buying price is far higher than the indicated buy price, so the \u003ca href=\u0022https://www.5paisa.com/hindi/finschool/course/technical-analysis-advance/stop-loss/\u0022\u003estop loss\u003c/a\u003e is rather deep when buying the following day. But as a compromise, the risk-averse trader only buys after double verifying that the bullishness has in fact been established.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eThe adventurous person would purchase the shares the day the marubozu is established. Needs to confirm Validation is really easy to do. At 3:30 PM, Indian marketplaces close. Therefore, around 3:28 PM, one should determine whether the CMP is roughly equal to the day\u0026#8217;s high price and whether the day\u0026#8217;s opening price is roughly equal to the day\u0026#8217;s low price.\u003c/span\u003e\u003c/p\u003e\u003ch5\u003e\u003cstrong\u003eConclusion\u003c/strong\u003e\u003c/h5\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eA long, muscular body without any wicks on each side defines the pattern. This is a common Marubozu pattern that, depending on the direction, maybe bullish or bearish. Marubozu open and close are distinguished if there are wicks to either side, and both of these candles are available in bullish and bearish configurations.\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022font-weight: 400;\u0022\u003eThe Marubozu candlestick formation is significant because it indicates that the market is now one-sided, and that price movement is likely to keep going in that same direction because there are no signs that a reversal is about to occur.\u003c/span\u003e\u003c/p\u003e\u003ch2\u003e \u003c/h2\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/section\u003e\u003c/div\u003e","protected":false},"excerpt":{"rendered":"\u003cp\u003eWhat Is Marubozu Candlestick Pattern? Marubozu is a Japanese word that translates to “Bald”. As a candlestick without an upper or lower shadow, Marubozu. A Marubozu candlestick has a large, lengthy body and hardly any shadows, making it difficult to miss. This sturdy body denotes a powerful movement in either an upward or downward direction. … \u003ca title=\u0022What is Marubozu Candlestick Pattern: Meaning \u0026#038; Examples\u0022 class=\u0022read-more\u0022 href=\u0022https://www.5paisa.com/hindi/finschool/marubozu-candlestick-pattern/\u0022 aria-label=\u0022Read more about What is Marubozu Candlestick Pattern: Meaning \u0026#038; Examples\u0022\u003eRead more\u003c/a\u003e\u003c/p\u003e","protected":false},"author":1,"featured_media":36207,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,180],"tags":[],"class_list":["post-36201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-trading-chart-patterns"],"acf":[],"_links":{"self":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/36201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts"}],"about":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/types/post"}],"author":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/users/1"}],"replies":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/comments?post=36201"}],"version-history":[{"count":28,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/36201/revisions"}],"predecessor-version":[{"id":65137,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/36201/revisions/65137"}],"wp:featuredmedia":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media/36207"}],"wp:attachment":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media?parent=36201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/categories?post=36201"},{"taxonomy":"post_tag","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/tags?post=36201"}],"curies":[{"name":"wp","href":"https://api.w.org/{rel}","templated":true}]}}