Marubozu (Shaven) Candle Pattern Explained (real chart examples)

Marubozu (Shaven) Candle Pattern Explained (real chart examples) 1
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The Marubozu Pattern is a candlestick chart pattern which signals a potential continuation in the market. In this article we will show you how to identify it in the right market position with real chart examples.

The Marubozu Candle Pattern is a candle pattern which signals a continuation in the market. The Pattern can be Bullish or Bearish depending on where it forms.

Bullish Maruzozu should be identified as a signal when occurring in an up-trending market or in the middle of a range. Bearish Marubozu should be identified as a signal when occurring in an down-trending market or in the middle of a range.

Marubozu (Shaven) Candle Pattern Criteria:

  • A relatively large real body with no upper or lower shadows.
  • Bullish Marubozu: the candle is a green (bullish) candle.
  • Bearish Marubozu: the candle is a red (bearish) candle.

Additional Notes:

  • Sometimes also referred to as a Momentum Candle.
  • This candle can also occur at the end of a trend as a final blow-off before a reversal.
  • It is as such a weak signal for entering a trade but could be a good signal to hold a position open if it occurs and there is a subsequent continuation of the trend.
  • Some people consider a very short tail to still be valid.
  • Similar to the Belt Hold Patterns (see related patterns section at the end of this post).

Quick Reference Guide – Candlestick Basics. If you need a reminder of what candlesticks are have a look at our free PDF – Candlesticks Explained.

The criteria and examples above are just the technical definitions of this pattern. However patterns are only useful with context and with real chart examples.

No pattern will ever exactly match the criteria and in order to be a useful signal must occur in the correct place in a trend. Let’s start by looking at the the classification table for this pattern.

Bullish Marubozu (Shaven) Candle Pattern Classification Table

Number of Candles In Pattern 1
Type: (Reversal/Continuation) Continuation
Bullish/Bearish/Indecision Bullish
Market Conditions: Range, Down-trend, Up-trend Up-trend, Ranging
Position: Top, Bottom, Range Range

Bearish Marubozu (Shaven) Candle Pattern Classification Table

Number of Candles In Pattern 1
Type: (Reversal/Continuation) Continuation
Bullish/Bearish/Indecision Bearish
Market Conditions: Range, Down-trend, Up-trend Down-trend, Ranging
Position: Top, Bottom, Range Range

What Price Action Does The Marubozu Pattern Represent?

All candlestick patterns are formed by price action. But the popular ones represent price action that may have significance in signalling the direction of the market.

Bullish Marubozu

A Bullish Marubozu is a strong bullish (green) candle that moves straight up from open without retracement (no lower shadow). With strong momentum it continues to rise and closes at the high (no upper shadow).

This pattern indicates the potential for momentum in the trend. If it is validated with a continued move then it can signal to a trader that it may be worth holding a position open.

Bearish Marubozu

A Bearish Marubozu is a strong bearish (red) candle that moves straight down from open without retracement (no upper shadow). With strong momentum it continues to fall and closes at the low (no lower shadow).

This pattern indicates the potential for momentum in the trend. If it is validated with a continued move then it can signal to a trader that it may be worth holding a position open.

Marubozu In An Overextended Market

The Marubozu can form at any time and it is not unusual to see it at the end of an extended trend. This is why this is a dangerous pattern to use for entries. This is especially true on the daily time frame.

In the FTSE100 example below you can see an example of this. The market was uptrending and a Marubozu formed in the chart. This however happened in an area of resistance (round level number).

A Harami Candle Pattern then formed with the Marubozu as the first candle. The trend then ran out of steam and reversed.

Overextended Bullish Marubozu Candle Pattern Example in a Up-trending Market
Overextended Bullish Marubozu Candle Pattern Example in a Up-trending Market

Note: you can get a free round level indicator for MT4 from us here: Round Levels MT4 Indicator.

Here is another example (US500), this time of a Bearish Marubozu on a daily time frame which was quickly rejected by subsequent price action leading to a reversal in the market.

Overextended Bearish Marubozu Candle Pattern Example in a Down-trending Market
Overextended Bearish Marubozu Candle Pattern Example in a Down-trending Market

In What Market Conditions Does The Bullish and Bearish Marubozu Candle Pattern Become A Signal?

To recap, the Bullish Marubozu Pattern is seen as a potential continuation pattern when it forms a relatively large candle in an up-trend, followed by confirmatory price action in the direction of the uptrend.

The Bearish Marubozu Pattern is seen as a potential continuation pattern when it forms a relatively large candle in a down-trend, followed by confirmatory price action in the direction of the down-trend.

Marubozu Pattern With Confirmation

Confirmation is probably one of the most important concepts for consistently profitable trading. Confirmation is where you have several signals of a move in the same direction to help improve the odds of your trade.

As mentioned already, the best confirmation for the Marubozu Pattern, whether Bullish or Bearish, is to see subsequent price action (next next few candles) confirm the trend.

Marubozu Patterns At Key Support And Resistance

If a Bullish Maribozu forms at a key area of resistance or a Bearish Maribozu at a key area of support then extra caution is required before entering the market.

By definition a Marubozu is a large candle and as such it could easily become a blow off top or bottom when moving quickly into key areas as stops are triggered, causing a reversal.

Let’s look at some more real chart examples.

Bullish Marubozu Candle Pattern In A Ranging Market

A ranging market is one where the price action moves up and down between two sets of support and resistance. This is also known as a sideways, balancing or horizontal market. In essence the price action is struggling to break out of the range decisively either on the upside or downside.

Ranging Market Example
Ranging Market Example

The Marubozu is a much weaker signal in a ranging market but can sometimes validate one end of a range.

In the US500 example below the market has moved towards the bottom of the range and a Marubozu formed helping to confirm that the move will continue to the top of the range.

Bullish Marubozu Candle Pattern Example in a Ranging Market
Bullish Marubozu Candle Pattern Example in a Ranging Market

Bullish Marubozu Pattern In An Up-Trending Market

An up-trending market is one where the price action generally moves down over time and is characterized by higher lows and higher highs.

Up-trending Market Example
Up-trending Market Example

In this example below of the US500 market a Bullish Marubozu formed in the uptrend. It was a relatively large candle compared to the previous candles and was not rejected by subsequent price action.

If a trader had an open long position, this may have been a good signal to hold it a bit longer.

Bullish Marubozu Candle Pattern Example in a Up-trending Market
Bullish Marubozu Candle Pattern Example in a Up-trending Market

Bearish Marubozu Candle Pattern In A Ranging Market

Here is a good example of a Bearish Marubozu forming in a ranging market. As mentioned it is a much weaker signal in a ranging market and despite forming several times, there was no breakout of the range.

Bearish Marubozu Candle Pattern Example in a Ranging Market
Bearish Marubozu Candle Pattern Example in a Ranging Market

Bearish Marubozu Pattern In A Down-Trending Market

A down-trending market is one where the price action generally moves down over time and is characterized by lower lows and lower highs.

Down-trending Market Example
Down-trending Market Example

In this US500 example below we can see several good examples of the Bearish Marubozu candles forming as momentum confirmations of the down-trend.

Bearish Marubozu Candle Pattern Example in a Down-trending Market
Bearish Marubozu Candle Pattern Example in a Down-trending Market

Related Candle Patterns

The Marubozu pattern is not always consistently described. Here on Nothardtrading.com, we describe a Maribozu as having both a shaven head and bottom (no wicks on either side).

Some people will talk about Shaven Head candles and Shaven Bottom candles with a wick on one end of the candle as Marubozu.

There are two patterns which include this type of candle which is very similar to the Marubozu and we have put links below where you can read more about them:

Candle Pattern MT4 Indicator Downloads

If you trade using MT4 then why not try out our free MT4 indicators? Most of our indicators, including the most common candle pattern indicators are Free and available for download here: MT4 Indicator Page.

Most of our candle indicators also have an alternate version which can show the signal in a separate indicator window of the chart if that is your preference.

For advanced users you can use our Pin Bar Pattern Manager (Paid) to specify your own parameters of candles you want to identify. You can find that here.

Important Information About Candlestick Patterns

Attribution:

All of the candlestick patterns that we explain on NothardTrading.com must be attributed to Steve Nison and his books on candle charting, the most famous of which was Japanese Candlestick Charting Techniques (Amazon). You can also find out more at his website here.

Interpretation Of Candle Patterns:

It is important to note that these patterns were originally identified on the daily timeframes of index charts, which is still where they are the most useful. However, this does not mean that they cannot be used for other markets or time frames.

No signal is perfect and should never be used as such. Any patterns that you identify only signals a potential move based on the fact that history repeats itself and forms regular patterns in similar situations.

But past performance is no guarantee of future results! So always treat these patterns with care and think of these guidelines when using them.

Best practice guide for trading of candle patterns:

  • No pattern is ever perfect. Be aware that patterns will form slightly differently each time and in different markets.
  • Use them as consistently as possible. Even though you will never find patterns exactly the same, you should always implement a consistent ruleset when identifying and using patterns.
  • It is never a guarantee, only an indication.
  • Make sure you are using it in the right context. For example if it is a continuation pattern then don’t use it to trade reversals!
  • Use multiple signals (confirmations) to have more confidence in your trading.

More About Candlestick Patterns

Justina Nothard

Justina Nothard

Hi, I’m Justina Nothard, a retail investor trading Stock Index Futures.

I understand how hard it can be for the ordinary trader to learn the basics and find useful tools and practical information.

This is why I decided to create Nothard Trading to help you take control of your trading.

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