65-Day Academy · Day 7 · Reading Charts
Marubozu — Total Conviction
No wicks, no mercy
A marubozu is a candle with (almost) no wicks: it opens at one extreme and closes at the other. A green marubozu = buyers controlled every minute of the period. A red one = sellers never lost the ball. It is the strongest single-candle conviction statement.
How traders use it
A green marubozu breaking out of a range often launches the next leg — its low becomes the trailing-stop level (the candle's own floor). A red marubozu breaking down does the mirror. But in illiquid names or at session opens, "marubozu-looking" candles can just be thin trading — check volume before trusting conviction.
What you'll practise
True or false: a green marubozu on unusually LOW volume is one of the most reliable bullish signals.
10 XP in the app · introductory
Sources
- MarubozuInvestopedia
- Technical AnalysisJack Schwager
Take this lesson graded in the app →
All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.