This section is part of our candlestick patterns blog series. Please see The Patterns Dictionary for more details.
Figure 1. Closing Black Marubozu (basic candle).
Forecast: reversal or continuation of the trend
Trend prior to the pattern: n/a
Opposite candlestick: Closing White Marubozu
Construction:
- black body
- no upper shadow
- upper shadow smaller than the body
- appears as a short or long line
Closing Black Marubozu is a candle where the close price and the low price are at the same level (no lower shadow exists). It must have a body covering at least 51 percent of the full candle height.
According to Morris, Closing Black Marubozu and Closing White Marubozu are more powerful than Opening Black Marubozu and Opening White Marubozu.
Closing Black Marubozu indicates the bears' strength because the close price and the low price are at the same level. Depending on the position where the candle of such type is formed, it can be either a reversal or continuation candle. When Closing Black Marubozu occurs in a downtrend, along with other black candles, such a candle confirms the power of the trend. Occurrence of Closing Black Marubozu in an uptrend may be a trend reversal signal.
Figure 2. Closing Black Marubozu in six different scenarios. First and the fourth occurrences (from the left) show the candle within a downtrend. Third and sixth appearance shows Closing Black Marubozu being part of a bearish reversal Turn Down pattern. Second and fifth Closing Black Marubozu is a part of bullish reversal Homing Pigeon and Piercing pattern respectively.
Figure 3. Closing Black Marubozu candle breaking the uptrend being a part of Tweezers Top and Bearish Engulfing patterns. In the first instance, a long black body of Closing Black Marubozu forms a strong resistance zone because it occurred at a very high trading volume.
