Intermediate: Key Patterns & Trading Logic

Continuation Patterns: Marubozu

πŸ”₯ Introduction: When the Market Shows No Doubt

In crypto trading, some candlesticks leave no room for hesitation β€” they show conviction, control, and raw momentum. One of the clearest examples of this is the Marubozu candle.

A Marubozu isn't just a continuation signal. It's a statement β€” that bulls or bears are fully in charge. If you’re trend trading, recognizing a Marubozu can help you ride the wave and avoid hesitation.

In this article, you'll learn:

  • What a Marubozu candle is
  • How to spot bullish and bearish Marubozu patterns
  • When they signal continuation
  • How to avoid false breakouts

πŸ“˜ What Is a Marubozu Candle?

βœ… Definition:

A Marubozu (Japanese for β€œbald” or β€œshaved head”) is a single candlestick with no wicks (or extremely small ones). It has:

  • No upper or lower shadow (or barely visible)
  • A full body, showing strong momentum in one direction

There are two types:

  • Bullish Marubozu: Open = low, Close = high
  • Bearish Marubozu: Open = high, Close = low

🧠 Meaning:

A bullish Marubozu means buyers dominated from open to close.

A bearish Marubozu means sellers had full control all the way down.

These candles often confirm continuation when they appear during a trend.

πŸ“ˆ Bullish Marubozu

πŸ” Characteristics:

  • Appears during an uptrend
  • Large green candle
  • No wicks or shadows
  • Closes at its high

🧠 Interpretation:

Buyers were in control from the first second of the candle until it closed β€” no interruptions, no pullbacks. If this follows a bullish breakout or support bounce, it suggests strong continuation.

πŸ“‰ Bearish Marubozu

πŸ” Characteristics:

  • Appears during a downtrend
  • Large red candle
  • No wicks
  • Closes at its low

🧠 Interpretation:

Sellers controlled the price from top to bottom. If this appears after a resistance rejection or breakdown, it’s often a signal of strong selling continuation.

πŸ“Š When Marubozu Signals Continuation

A Marubozu candle is most useful in trending conditions β€” either breaking out or resuming a trend.

βœ… Bullish Continuation Example:

  • Bitcoin breaks through $30,000 resistance
  • A daily Marubozu candle closes at $31,500
  • Volume confirms the move
  • ➑️ High probability of continued upside

βœ… Bearish Continuation Example:

  • Ethereum breaks below $2,000 support
  • 4-hour Marubozu candle closes at $1,930
  • Momentum and volume both strong
  • ➑️ Bearish continuation expected

πŸ“Š When NOT to Trust a Marubozu

Even though Marubozu candles show strength, context still matters.

❌ Don’t trust Marubozu when:

  • The market is ranging or choppy
  • It forms on low volume
  • It appears after multiple strong candles (exhaustion likely)
  • The candle is extremely large (potential for fakeout or stop hunt)

πŸ’‘ Pro Tips for Crypto Traders

  • Volume is key: A real Marubozu continuation should be supported by rising volume
  • Timeframe matters: Use on 1H, 4H, or Daily for better signals (1m or 5m charts often fake out)
  • Combine with RSI breakout, MACD cross, or moving average support

🧠 Marubozu vs. Full-Body Candle

A candle might look like a Marubozu, but if it has tiny wicks, it’s not pure. However, in crypto, a near-Marubozu (90%+ full body) can still be considered strong if volume supports it.

FeatureMarubozuLarge Candle with Wicks
ShadowsNoneSmall wicks
Signal StrengthHighest (cleanest momentum)Slightly weaker
ReliabilityHigh, especially with volumeDepends on wick size/context

βœ… Conclusion

A Marubozu candle is a symbol of dominance β€” either from buyers (bullish) or sellers (bearish). In crypto, where momentum drives massive moves, spotting a clean Marubozu at the right moment can offer powerful confirmation of trend continuation.

But like all candlestick patterns, it’s not a stand-alone signal. Pair it with volume, key levels, and supporting indicators to trade with confidence.