In candlestick charting, a Marubozu is a candle with no upper or lower shadow (or only a very small one), meaning the open and close prices span the period's full high-low range. A long white Marubozu occurs when the close is higher than the open, and a long black Marubozu occurs when the close is lower than the open.
Traders view a Marubozu as evidence of strong intraperiod momentum. Its presence indicates that during the period, price moved from the open to the close with little retracement. The interpretation depends on context: after an uptrend, a long white Marubozu may confirm continued upward pressure for that period; after a downtrend, a long black Marubozu may indicate sustained downside movement for that period. However, one candle alone is not a guarantee of future direction and should be considered alongside other signals such as the prevailing trend, volume, and subsequent candles.
In volatile markets, a Marubozu can form by chance and can be followed by a reversal or consolidation. Some charting styles classify near-zero shadows as a Marubozu, but tolerances vary. Look for follow-through in the next session to gauge strength.
Use Marubozu across time frames, and in conjunction with other technical tools. Do not interpret a Marubozu in isolation; confirm with volume, price action, and nearby support/resistance levels.
Example: On a daily chart, a long white Marubozu forms with the open at the day's low and the close at the day's high, with no visible wicks.
Candlestick chart · Shadow (wick) · Open price · Close price · Price action · Engulfing pattern · Doji