Marubozu

What it is

A marubozu ('bald' or 'shaved head' in Japanese) is a candle with little or no wick at either end. A bullish marubozu opens at its low and closes at its high: buyers were in control the whole time. A bearish one opens at the high and closes at the low.

How to spot it

• A long body with no visible wicks.
• Often the first candle of a breakout or a displacement move.

How to use it

• Read it as strong momentum; look for continuation on a pullback, often to the middle of the candle.
• At the end of a long trend, it can also be a climax, so check where it formed.

Common mistakes

• Chasing it at the close.
• Calling a candle with obvious wicks a marubozu.

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