What are the formation conditions for Bearish Marubozu?

No upper or lower shadows (or less than 1% of the body). Must be a bearish candle (close < open). The body must be sufficiently large (at least 1.5 times recent average candle size). More reliable as a reversal signal at the top of an uptrend. During a downtrend, it serves as a continuation signal.

How to avoid false signals for Bearish Marubozu?

Less directional within a range-bound market. Lack of volume may indicate a false signal. Less effective against the higher timeframe trend. Near a major support line, downside may be limited. A gap-up open the next day indicates a failed decline.

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Bearish Marubozu

Q: What are the entry conditions for Bearish Marubozu?

Enter short at the open of the next candle after the marubozu is confirmed. Or enter when price drops below the marubozu's low.

Q: How to calculate the price target for Bearish Marubozu?

Project 1.5-2 times the body length downward from the low. Also reference nearby support lines.

Q: What is the stop loss rule for Bearish Marubozu?

Place a stop-loss slightly above the marubozu's high (which equals its open).

Q: How to avoid false signals for Bearish Marubozu?

Less directional within a range-bound market. Lack of volume may indicate a false signal. Less effective against the higher timeframe trend. Near a major support line, downside may be limited. A gap-up open the next day indicates a failed decline.

BeginnerCandlestick PatternsBearish (Down)Reliability 60%

Pattern Formation

6 / 6 candles

Speed

Statistics

Target Hit Rate

58%

Average Move

Failure Rate

20%

Avg Formation Days

1 days

Volume Confirmation Boost

+13%

Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.

A large bearish candle with no (or extremely short) shadows. Open equals high and close equals low, indicating relentless selling from open to close. It represents strong selling pressure and signals the start or acceleration of a downtrend.

Formation Conditions

No upper or lower shadows (or less than 1% of the body)
Must be a bearish candle (close < open)
The body must be sufficiently large (at least 1.5 times recent average candle size)
More reliable as a reversal signal at the top of an uptrend
During a downtrend, it serves as a continuation signal

Entry Condition

Enter short at the open of the next candle after the marubozu is confirmed. Or enter when price drops below the marubozu's low.

Target Calculation

Project 1.5-2 times the body length downward from the low. Also reference nearby support lines.

Stop Loss Rule

Place a stop-loss slightly above the marubozu's high (which equals its open).

Volume Profile

Increased volume during formation is important. Particularly at the top of an uptrend, a volume surge enhances reliability.

False Signal Detection

Less directional within a range-bound market
Lack of volume may indicate a false signal
Less effective against the higher timeframe trend
Near a major support line, downside may be limited
A gap-up open the next day indicates a failed decline

Bearish Marubozu

Pattern Formation

Statistics

Formation Conditions

Entry Condition

Target Calculation

Stop Loss Rule

Volume Profile

False Signal Detection

Related Indicators

Related Patterns

Learn More

Bearish Marubozu

Pattern Formation

Statistics

Formation Conditions

Entry Condition

Target Calculation

Stop Loss Rule

Volume Profile

False Signal Detection

Related Indicators

Related Patterns

Learn More