Trading term
What is Marubozu?
A marubozu is a candle with a full body and no wicks at either end — it opens at one extreme of its range and closes at the other. The name is Japanese for 'bald', and it signals one side controlled the entire period.
In a bullish marubozu the open is the low and the close is the high: from the first tick to the last, buyers never allowed price below the opening level and never let it retreat from the high. A bearish marubozu is the reverse. In practice a candle with only trivial wicks is usually accepted as one.
The information is conviction. Most candles show a fight — a push up, a push back, wicks at both ends. A marubozu shows no such fight, which is why it's treated as one of the strongest single-candle momentum signals. It commonly appears on breakout days, on gap-and-go moves, and at the start of an impulsive leg.
Its weakness is the flip side of its strength. Because price closed at the extreme, there is no pullback within the candle to enter on, and the stop — the opposite end of the body — is a full candle's range away. The signal is clear; the entry is awkward.
The candle opens at its low of $44.90 and closes at its high of $50.20 with no wick at either end — the cleanest possible statement of control.
For example
After four small, indecisive candles around $45, a stock opens at $44.90, never trades below that, and closes at $50.20 — its high for the day, with no wick at either end. Buyers controlled every hour, and price continues up over the following sessions.
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Explore Premium →Why it matters to you
A marubozu is the cleanest read on conviction a single candle can give. A range that expands sharply with no rejection at either end usually means new information or a decisive break, and both tend to have follow-through — which makes it a useful confirmation that a breakout is real rather than a probe.
⚠ Great signal, awkward entry
Because the candle closes at its extreme, buying the close means buying the top of the move with a stop a whole range away — a poor risk-to-reward ratio however strong the signal. Marubozu candles are also frequently followed by a pullback as short-term traders take profit. Most traders use it as confirmation of a move rather than as an entry trigger.