Marubozu / Morubozu

The Marubozu and the Morubozu are long candlesticks that have no shadows.

They are usually said to show the strength of a trend but they actually can be interpreted differently according to the context in which they appear.

Their characteristics are as follows:

• The body of the candlestick is very long and black (Morubozu) or white (Marubozu)

• There is almost no upper or lower shadow, if any.

On this chart, the Marubozu appears in various situations and has different meanings. The n°1 forms a bullish engulfing and can thus be considered as a reversal pattern. The 2nd and 3rd Marubozus show the strength of the trend, which is the typical way of interpreting this candlestick.

These long Japanese candlesticks really show the strength of a trend but they also often reveal an excessive move in a trend and a pause often follows these candlesticks,  a time for the market to “catch its breath” (traders do not want to pay too high a price for their position-taking and that slows the market down). This is the case here where the market pauses after the 2nd and 3rd Marubozus which forms Haramis. The same goes for the 4th and 5th Marubozus.

One this chart, we discover another way of interpreting the Marubozu. Here, the market is following a primary uptrend and the Marubozu shows a strengthening with its sloppy series of candlesticks that reveals the uncertainty. When the 6th Marubozu appears, the traders who were counting on the reversal of the trend are trapped; they cut their positions, what reinforces the new rise. There is now a new bullish consensus and the primary uptrend can resume.

The Marubozu is a Japanese candlestick which often shows the strength of a current trend while warning that it might pause afterwards. It can also have some other meanings so it is important to consider the context in which it appears.