The Marubozu (Japanese for "bald head") is a full-bodied candle with little or no wicks. It is the strongest single-candle signal in candlestick analysis โ showing that one side completely dominated the entire session from open to close with no opposition at either extreme.
Bullish vs Bearish Marubozu
What Marubozu Means
| Type | Open | Close | Signal |
|---|---|---|---|
| Bullish Marubozu | = Day Low | = Day High | Buyers dominated โ strong bullish momentum |
| Bearish Marubozu | = Day High | = Day Low | Sellers dominated โ strong bearish momentum |
Trading the Marubozu
Bullish Marubozu Strategy:
A Bullish Marubozu after a downtrend or at major support = strong buy signal
Entry: Next candle open
Stop Loss: Below the Marubozu open (the low of the candle)
No confirmation needed โ the candle itself IS the confirmation
Bearish Marubozu Strategy:
A Bearish Marubozu after an uptrend or at major resistance = strong sell/exit signal
The entire session was controlled by sellers โ do not fight this momentum
A Bullish Marubozu after a downtrend or at major support = strong buy signal
Entry: Next candle open
Stop Loss: Below the Marubozu open (the low of the candle)
No confirmation needed โ the candle itself IS the confirmation
Bearish Marubozu Strategy:
A Bearish Marubozu after an uptrend or at major resistance = strong sell/exit signal
The entire session was controlled by sellers โ do not fight this momentum
Marubozu on NSE โ Key Situations
- Budget day Marubozu โ a full-bodied candle on Union Budget day sets the trend for weeks
- Marubozu on earnings results โ gap-up or gap-down with no wicks confirms institutional conviction
- Marubozu breakout โ a Bullish Marubozu breaking above a key resistance on high volume is one of the highest-conviction entry signals on NSE
A Bearish Marubozu during a bull market is extremely significant. When NIFTY forms a Bearish Marubozu at all-time highs, it often signals the start of a multi-week correction โ exit longs immediately rather than waiting for "confirmation."
