What is Marubozu?
Maruboju means ‘bald head (丸坊主)’ in Japanese. It is a bar with no tail (top and bottom shadows) or is very short, and shows the strongest unidirectional force among candles.
The appearance of Maruboju means that there was an overwhelming force that was consistent in one direction from the beginning of the market to the close. Either buying or selling completely dominated the market.
Rising Maruboju vs. Falling Maruboju
| Rising Maruboju | Maruboju falling | |
|---|---|---|
| color | Beekeeping (green) | Eumbong (red) |
| meaning | Strong buying power dominates | Strong selling force dominates |
| signal | Strengthening upward trend | Strengthening downward trend |
| Entry direction | 🟢 Long (trend following) | 🔴 Short (trend following) |
Maruboju signal classification
1. Breakout Marubozu
Strong Maruboju breaking through resistance or support line → Trend following entry signal
2. Trend Marubozu
Maruboju appears in a trend that is already in progress → Check continuation of trend
3. Reversal Marubozu
Strong maruboju that suddenly reverses after adjustment → first signal after direction reversal
Futures Trading Strategy
Following upward Maruboju trend
Conditions:
- Maruboju, a strong candle, appears during an upward trend.
- Average trading volume doubled+
- More powerful when breaking the resistance line
Entry: Maruboju closing price or next candle opening price
Stop loss: Below the bottom of Maruboju’s body (low price)
Goal: Increase the size of Maruboju by 1-2 times.
caution
It is dangerous to pursue Maruboju with high leverage. If there is a correction after Maruboju, the loss is large. A split entry strategy that involves entering at Maruboju's closing price and then making additional entries when the stock adjusts is safer.
Related guides
- Rising engulfing and bullish engulfing combination →
- Three White Soldiers Pattern →
- Trend following strategy →
- Liquidation price calculator →