Marubozu.

Sounds like some kind of voodoo magic, huh? “I will cast the evil spell of the Marubozu on you!”

Fortunately, that’s not what it means. Marubozu means there are no shadows from the bodies.

The word “marubozu ” translates to “bald head” or “shaved head” in Japanese.

So a Marubozu candlestick is a bald candle or shaved candle means it has no shadow or wick.

Depending on whether the candlestick’s body is filled or hollow, the high and low are the same as its open or close.

Check out the two types of Marubozus in the picture below.

White Marubozu

A White Marubozu contains a long white body with no shadows.

The open price equals the low price and the close price equals the high price.

This means that the candle opened at its lowest price and closed at its highest price.

This is a very bullish candle as it shows that buyers were in control of the entire session.

It usually becomes the first part of a bullish continuation or a bullish reversal pattern.

Black Marubozu

A Black Marubozu contains a long black body with no shadows.

The open equals the high and the close equals the low.

This means that the candle opened at its highest price and closed at its lowest price.

This is a very bearish candle as it shows that sellers controlled the price action the entire session.

It usually implies a bearish continuation or bearish reversal.

Depending on where a marubozu is located and what color it is, here are few guidelines:

White Marubozu

• If a White Marubozu forms at the end of an uptrend, a continuation is likely.
• If a White Marubozu forms at the end of a downtrend, a reversal is likely.

Black Marubozu

• If a Black Marubozu forms at the end of a downtrend, a continuation is likely.
• If a Black Marubozu forms at the end of an uptrend, a reversal is likely.

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