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Figure 1. White Marubozu (basic candle).
Japanese name: marubozu, bozu
Forecast: reversal or continuation of a trend
Trend prior to the pattern: n/a
Opposite candlestick: Black Marubozu
Construction:
- white body
- lack of shadows
- appears as a short or long line
Marubozu in Japanese means “bald head” or “shaved head”. This is because such a candle does not have at least one shadow, which implies that the opening or closing price will be equal to one of the candle's maximum prices. A Marubozu, which does not have both shadows, indicates that the market opened and closed at the extreme levels of that candle.
White Marubozu appearing as a long line, likewise the Long White Candle, has a substantial significance. It indicates the strength of the market, especially if it is being formed at high trading volumes. Depending on how it appears on the chart, it may be considered as a continuation or reversal candle.
In a downtrend, White Marubozu may be the part of bullish reversal pattern, for example in Bullish Engulfing. While occurring during an uptrend it may form a bearish reversal pattern, for instance Bearish Tasuki Line.
Figure 2. White Marubozu basic candle in two different situations. The first occurrence is part of the Rising Window bullish continuation pattern. Please note how the first line of that pattern, occurring at a high trading volume, formed a strong support zone for a considerable period. The second appearance of the White Marubozu is part of Bearish Tasuki Line reversal pattern.
