Black Marubozu – What is it, definition and concept

A Black Marubozu is a Japanese candle that would be indicating thatThe session has been, for the most part, bearish.

Once again, as with others such as the bearish belt hold, we are dealing with a type of Japanese candle within technical analysis, widely used in trading. In this case, it reflects that prices decreased due to the prevailing selling force.

We must always analyze it with those around it, as we will see in the example. Thus, this type of candle can predict certain trends or changes in them, depending on the context in which it appears.

The form of the Black Marubozu

This candle has a figure that stands out from others, since we only have one body and there are no shadows or tails. Thus, its shape is rectangular and black (see example). In fact, its name in Japanese, marubozu, means “shaved head”, meaning that the hair would be the shade.

Its shape is very characteristic. Thus, having no tails (shadows), it is easy to see it on the chart, even if there are similar candles next to it, such as those with a single short tail. Therefore, it is a candle that we can find on the chart without problems.

Characteristics of Black Marubozu

We are going to list some of the most relevant features of the Black Marubozu.

  • First of all, as we have already mentioned, it is a rectangle with the shortest part as a base and black.
  • It has a low reliability by itself, but in the midst of others such as the bearish belt hold, they reinforce the change in trend.
  • They usually appear with other candles and, in turn, within patterns such as reversals, which cause changes in trend.
  • The size of the body is an indicator of selling strength and therefore bearish pressure.
  • If it appears at a session opening, it indicates that the previous day’s market prices reached their high, but closed at a low.
  • Finally, in this case the support takes on special importance, unlike the White Marubozu, in which the key indicator was resistance. If this is high compared to the average price, a very low reliability can be expected.
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Example of Black Marubozu

To finish, let’s see an example of this type of Japanese candle within a Bearish Tasuki Line bearish pattern. Said bear market would be the lines before the candle and could be of any type.

Black Marubozu 1

In this case, the Black Marubozu indicates that this market has been mostly bearish. However, being within a reversal pattern (Bullish Tasuki Line), a change in trend is expected, in this case, bullish. This would start on the next white candlestick.

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