• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2024
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
​

What Is Marubozu Candlestick Pattern?

  •  4 min read
  • 0•
  • 22 Sep 2023

In the world of technical analysis, the Marubozu candlestick pattern stands out as a powerful indicator providing valuable inputs about market sentiment and potential price trends. This distinct candlestick formation, characterized by its lack of wicks or shadows, can offer traders and investors crucial information for making informed decisions in the financial markets.

The Marubozu candlestick pattern is a single candlestick pattern that appears on price charts. Unlike many other candlestick patterns, the Marubozu has no upper or lower shadows, which means that its opening and closing prices are either at the high or low of the trading session. This unique characteristic makes it easy to spot on a chart and indicates strong buying or selling pressure in the market.

There are two main types of Marubozu candlestick patterns, each with its implications for market direction:

  • Bullish Marubozu

A candlestick with no upper shadow and a long lower shadow characterizes a bullish Marubozu. It opens at or near the session's low and closes at or near the high.

This pattern suggests intense buying pressure throughout the trading session. It often signifies that the bulls have taken control of the market, and there is potential for an upward trend or a bullish reversal.

  • Bearish Marubozu

In contrast, a bearish Marubozu has no lower shadow and a long upper shadow. It opens at or near the session's high and closes at or near the low.

A bearish Marubozu indicates intense selling pressure. It suggests that the bears are dominating the market, and there is a possibility of a downward trend or a bearish reversal.

The interpretation of Marubozu candlestick patterns depends on their type and the context in which they appear on the chart:

  • Confirmation of Trends: When a bullish Marubozu forms after a preceding uptrend, it can confirm the strength of the bullish trend. Conversely, a bearish Marubozu following a downtrend can confirm the bearish sentiment.

  • Reversal Signals: Both bullish and bearish Marubozu patterns can also act as reversal signals when they appear after an extended trend. For instance, a bearish Marubozu after a prolonged uptrend may suggest a potential trend reversal to the downside.

  • Volume Confirmation: To enhance the reliability of Marubozu patterns, traders often look for strong trading volume during the formation of the pattern. Higher volume can validate the significance of the pattern.

To Sum Up

The Marubozu candlestick pattern is a simple yet powerful tool in technical analysis. Its unique appearance on price charts provides valuable insights into market sentiment, potential trend reversals, and the strength of ongoing trends. Traders and investors can use this pattern as part of their analysis to make more informed decisions in the dynamic world of financial markets. However, like any technical indicator, it should be used in conjunction with other analysis methods and risk management strategies for optimal results.

FAQs on Marubozu Candlestick Pattern

The term "Marubozu" is of Japanese origin and translates to "Bald." When it comes to candlestick patterns, a Marubozu is a candlestick that lacks both an upper and lower shadow.

Yes, it does. A green Marubozu candle signifies a bullish sentiment, while a red Marubozu candle denotes a bearish sentiment in the market.

A Marubozu candlestick boasts an expansive, elongated body with minimal shadows, making it conspicuously distinct. This robust body signifies a formidable price movement in either an upward or downward trajectory.

A Marubozu candlestick opens when the stock's opening price aligns with either the day's low or the day's high.

The appearance of a bullish Marubozo candle, where the opening price equals the low, and the closing price equals the high, can serve as a reversal indicator when it emerges at the conclusion of a downtrend. This occurrence signifies a shift in sentiment, suggesting that the bulls are poised to drive the asset's value upwards.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Enjoy Free Demat Account Opening
+91 -

personImage
Enjoy Free Demat Account Opening
+91 -