Marubozu Candlestick Pattern: Meaning, 2 Types Full Guide

In price action trading, some candles speak louder than others. The Marubozu candlestick pattern is one such candle that clearly shows who is in control of the market-buyers or sellers. Unlike indecision candles such as Doji, a Marubozu reflects pure strength and conviction.

When this candle appears on a chart, it often marks the beginning of strong momentum or confirms an existing trend. Many traders spot Marubozu candles but fail to understand their real meaning, context, and limitations. A Marubozu is not just a long candle; it represents aggressive participation from one side of the market.

This detailed guide breaks down what a Marubozu candle pattern is, bullish Marubozu, bearish Marubozu, Marubozu candle types, its psychology, and how it can be traded responsibly. Doesn’t matter if you want to trade intraday or positional this pattern can significantly enhance your clarity.

What is Marubozu Candlestick Pattern?

A Marubozu pattern is a pattern characterized by a candle having no upper or lower shadow, or extremely small wicks. It is the opening and closing price of the session which is on one extreme and the other extreme.

No visible wicks or very small wicks
Strong directional movement
Indicates full control by buyers or sellers
Signals momentum and conviction

The word Marubozu comes from Japanese, meaning “bald” or “shaven,” referring to the absence of shadows.

Psychology Behind the Marubozu Candle Pattern

Understanding psychology makes this pattern far more powerful.

Bullish Marubozu Psychology

Buyers dominate from the opening bell
Price keeps rising without meaningful pullback
Sellers fail to push price lower at any point
Indicates strong demand and confidence

Bearish Marubozu Psychology

Sellers take control from the start
Price keeps falling without recovery
Buyers are completely overpowered
Indicates panic selling or strong distribution

In both cases, the market shows clear intent, unlike indecision patterns.

Bullish Marubozu Explained

A bullish is a long green (or white) candle with little to no shadows.

Structure

Open = Low
Close = High
Large real body

What It Indicates?

Strong buying interest
Buyers in full control
Continuation or start of an uptrend

When It Works Best?

After consolidation
Near support levels
During breakout from resistance
With rising volume

A Marubozu bullish often attracts momentum traders and institutional participation.

Bearish Marubozu Explained

A bearish Marubozu is a long red (or black) candle with no shadows.

Structure

Open = High
Close = Low
Large real body

What It Indicates?

Strong selling pressure
Sellers dominate the session
Continuation or start of a downtrend

When It Works Best?

Near resistance zones
After distribution phases
During breakdown from support
With increasing volume

Marubozu Bearish candles are commonly seen during panic or trend acceleration.

Marubozu Candle Types

1. Full Marubozu

No upper or lower shadow
Strongest form of Marubozu
Shows absolute control

Reliability: Very high

2. Opening Marubozu

No shadow on the opening side
Small shadow on the closing side

Meaning: Strong start, slight profit booking near close

3. Closing Marubozu

No shadow on the closing side
Small shadow on the opening side

Meaning: Momentum strengthened into the close

4. Near Marubozu

Very small shadows on both sides
Still shows dominance

Meaning: Slight hesitation, but trend strength remains

Marubozu Candle Pattern vs Other Patterns

Pattern	Market Message	Strength
Marubozu	Strong dominance	Very High
Doji	Indecision	Medium
Hammer	Reversal attempt	High
Engulfing	Trend reversal	High
Spinning Top	Weak momentum	Low

Marubozu is one of the clearest momentum indicators in candlestick analysis.

Where Marubozu Candle Pattern Works Best?

1. Trend Continuation

Appears during strong trends
Confirms trend strength

2. Breakout Trading

Forms during range breakouts
Signals institutional participation

3. Retest and Go Setup

Appears after retest of support or resistance
Confirms continuation

4. News or Event-Based Moves

Seen during results, policy announcements, or global cues

How to Trade Marubozu Candlestick Pattern?

Step 1: Identify the Market Context

Marubozu works best in trending or breakout markets, not in choppy ranges.

Step 2: Check Volume

High volume validates the strength of the Marubozu candle.

Step 3: Trade the Continuation

Enter on small pullback
Or enter on break of Marubozu high/low

Step 4: Stop-Loss Placement

Stop-loss takes place when:

Below the low for bullish Marubozu
Above the high for bearish Marubozu

Step 5: Target Setting

Use previous resistance/support
Or trail stop-loss with moving average

Example: Bullish Marubozu in Stock Trading

Assume a stock consolidates between ₹480–₹500 for two weeks. One day, it breaks above ₹500 with a Marubozu bullish and above-average volume.

This indicates:

Breakout confirmation
Strong buyer participation
Higher probability of trend continuation

Such setups often lead to sustained moves if market sentiment supports them.

Marubozu Candlestick Pattern with Indicators

Marubozu candle pattern becomes even more reliable when combined with indicators:

Moving Averages: Trend confirmation
RSI: Strength or overbought context
Volume: Conviction validation
VWAP: Intraday momentum alignment

A bullish Marubozu above key moving averages often signals trend acceleration.

Marubozu in Intraday Trading

Clear direction
Fast momentum
Suitable for breakout strategies
False signals in low volume
Risky near market open without confirmation

Best used with VWAP, volume, and higher timeframe bias.

Marubozu in Swing Trading

Strong continuation signal
Better risk-reward
Less noise

Daily and weekly Marubozu candles carry far more weight than lower timeframes.

Common Mistakes Traders Make with Marubozu

Chasing price after extended move
Ignoring volume confirmation
Trading Marubozu in sideways markets
Placing tight stop-loss near entry

Understanding context prevents most losing trades.

Marubozu vs Fake Breakouts

Yes, but with discipline.

Beginners should:

Trade on higher timeframes
Avoid late entries
Combine with trend analysis
Practice risk management

This aligns with structured trading education taught at Trendy Traders Academy.

Common Mistakes Traders Make with Marubozu

Not every Marubozu leads to continuation.

Red flags include:

Low volume
Occurrence at major resistance without follow-through
Immediate rejection next candle

Always wait for confirmation and follow-through.

Conclusion

The Marubozu candlestick pattern reflects clear market dominance and strong intent from either buyers or sellers. Unlike candles that signal hesitation, it leaves little doubt about who controls price movement. When applied with the right context, it allows traders to spot momentum-driven moves, trend continuation, and breakout opportunities more effectively.

The real advantage, however, comes not from simply recognizing the candle, but from understanding its placement and the conditions under which it forms. Marubozu signals become far more reliable when supported by volume analysis, prevailing trend structure, and important price zones.

With this pattern, the proper confirmation, and high-level risk management, the traders are usually more reliant on the results. With time, it is easier to learn the Marubozu candle types to enhance price-action and enhance the overall trading judgment.

Also Download : Trendy Traders Academy’s Candlestick Patterns PDF.

Check more Candlestick Patterns

Types of Candlestick Patterns	Bullish, bearish, neutral, continuation, and reversal patterns help traders identify market direction, momentum, and possible trend changes.
Hammer Candlestick Pattern	Signals a possible bullish reversal after a downtrend as buyers reject lower prices.
Engulfing Candlestick Pattern	Indicates potential bullish reversal where buying pressure appears after a decline.
Top 5 Bullish Candlestick Pattern	Patterns that indicate buying strength and possible upward trend reversal or continuation.
Top 5 Bearish Candlestick Pattern	Patterns that signal selling pressure and a potential downward trend reversal.
Piercing Pattern Candlestick	A bullish reversal pattern where buyers regain control after a strong bearish move.
Three White Soldiers Candlestick Pattern	Confirms a strong bullish trend with three consecutive long bullish candles.
Hanging Man Candlestick Pattern	Warns of a possible bearish reversal after an uptrend due to selling pressure.
Shooting Star Candlestick Pattern	Indicates bearish reversal when price rejects higher levels after an uptrend.
Morning Star Candlestick Pattern	Signals a bullish reversal using a three-candle structure after a downtrend.
Evening Star Candlestick Pattern	Indicates a bearish reversal at the top using a three-candle formation.
Dark Cloud Cover Pattern	A bearish reversal pattern where sellers enter strongly after a bullish move.
Three Black Crows Pattern	Confirms strong bearish momentum with three long consecutive bearish candles.
Spinning Top Candlestick Pattern	Reflects uncertainty and loss of momentum in the current trend.
Heikin ashi Candlestick pattern	A smoothed candlestick method that reduces market noise and helps traders clearly identify trends.