Candlestick patterns
Marubozu candle
A large candle with little or no wick: it opens at one extreme and closes at the other.
Why it works
One side controlled the entire period. A marubozu that breaks structure is a sign of displacement: institutions moving price with intent.
How to use it
Do not chase the marubozu itself. Wait for a pullback into its body or the gap it leaves behind, and trade in its direction.
The typical mistake
Buying at the close of a huge green marubozu, at the worst price, right before the pullback.
FAQ
What is Marubozu in trading?
A large candle with little or no wick: it opens at one extreme and closes at the other.
How do you trade Marubozu?
Do not chase the marubozu itself. Wait for a pullback into its body or the gap it leaves behind, and trade in its direction.