Marubozu
A candlestick with no wicks (or negligible ones), where the open and close sit at or near the extreme high and low, reflecting one-sided conviction throughout the entire period.
A marubozu is a candlestick with no wicks, or only negligible ones, meaning the candle's open and close sit at or very near its extreme high and low for the period. A bullish marubozu opens at the period's low and closes at its high, reflecting buyers controlling price from the very start of the period straight through to the close with essentially no meaningful pushback from sellers. A bearish marubozu is the mirror case, opening at the high and closing at the low, reflecting sellers in complete control throughout.
A marubozu is generally considered a strong signal of one-sided conviction precisely because of the complete absence of wicks, which would otherwise reflect some meaningful pushback from the opposing side at some point during the period. A marubozu appearing at the start of a new move is sometimes treated as a particularly strong confirmation of a breakout (see Kaavon's "Breakout (and Breakdown)" glossary definition) or the beginning of a new trend, given the lack of any contrary price action during the period.
Examples
- A bullish marubozu, opening at the low and closing at the high with no wicks at all, reflects buyers controlling price completely throughout the entire period.
- A marubozu appearing right at a breakout is sometimes treated as particularly strong confirmation, since the absence of any wicks reflects no meaningful pushback from the opposing side.