Marubozu Candlestick: When One Side Wins the Session Completely

Most candles tell you about the battle between buyers and sellers during a session. The marubozu tells you the battle wasn't close: one side controlled the price from open to close without a meaningful challenge.

No wicks. Just a full body. The session opened at one extreme and closed at the other.

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What Is a Marubozu?

"Marubozu" means "bald" or "close-cropped" in Japanese — referring to the absence of wicks. The candle has a real body that spans virtually the entire session range.

Bullish Marubozu:

• Opens at (or very near) the session low
• Closes at (or very near) the session high
• Green body, no upper or lower wicks
• One side in complete control from first to last tick

Bearish Marubozu:

• Opens at (or very near) the session high
• Closes at (or very near) the session low
• Red body, no upper or lower wicks
• Sellers dominant from first to last tick

Formation threshold: Wicks less than 2–3% of the total body length. Perfect wicks aren't required — near-wicks still qualify.

Strength rating: 70/100 — the highest of any single-candle pattern.

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The Psychology

In most sessions, price oscillates. Buyers and sellers take turns. Wicks form on both sides as each group makes their case. The session ends somewhere in the middle, or one side edges out the other.

The marubozu represents a completely different dynamic. There was no real negotiation. From the moment the session opened, one direction dominated. There were no sustained pushbacks from the losing side. Buyers (or sellers) controlled every tick.

In crypto, bullish marubozus often form after major positive catalysts — a Coinbase listing, protocol upgrade, strong earnings from a related company, or an exchange reserve announcement. Bearish marubozus form on hard negative catalysts — exchange failures, regulatory crackdowns, hacks, or heavy liquidation cascades.

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What the Marubozu Means Based on Position

Bullish Marubozu in an Uptrend — Strong Continuation

A bullish marubozu that forms while the trend is already up says: "buyers aren't just holding their ground — they're dominating." This is trend continuation at full strength. No resistance was able to stop the session's close at the high.

Action: Trail stops up. This is not the time to fade the move — it's the time to ride it.

Bearish Marubozu in a Downtrend — Strong Continuation

The bearish version in a downtrend carries the same message. Sellers are in full control. No support held during the session. This is often when panic selling begins — every "support level" that was supposed to hold fails, stop losses trigger, and the move accelerates.

Action: If short, trail your stop down. If long, this is the most dangerous type of candle to hold through.

Bullish Marubozu After a Prolonged Downtrend — Potential Reversal

After extended selling, a bullish marubozu can signal capitulation of sellers and the arrival of aggressive buyers. If the marubozu forms at a historically significant support level, it may mark the trend reversal.

This is harder to trade in real time — you're catching a candle that's already moved far. Position sizing and risk management are critical.

Bearish Marubozu After a Long Rally — Distribution Warning

A full bearish marubozu after an extended uptrend is a warning that large players may be distributing. If this happens near a multi-year high or a historically significant resistance level, take it seriously.

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How to Trade the Marubozu

With the trend: The marubozu is a continuation signal. Use pullbacks after the marubozu candle to add to positions — the direction of the marubozu is the direction of strength.

Trend reversal marubozu: More complex. Ideally wait for a second confirming candle in the same direction before treating it as a genuine reversal.

Stop placement: For bullish marubozu continuation trades, stop below the low of the marubozu candle. For bearish marubozu trades, stop above the high.

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