advanced · TRADING LEARNING GUIDE
Marubozu: full-bodied candles
What is this concept?
An ideal marubozu's body covers its range. Bullish: open=low, close=high. Bearish: open=high, close=low. Near-marubozu requires an explicit tick-size tolerance.
Step by step
Measure completed body/range and wick lengths. Label exact and tolerance-based patterns separately; consider location and subsequent evidence.
From observation to decision
Record the instrument, venue, session and timeframe. Classify the observation using the definition, then write at least one alternative interpretation. Decide what evidence would invalidate your idea before entry. Mark missing information explicitly. Examples are hypothetical. Collect paper observations, including failures. Include fees, spread, slippage and timestamp alignment when measuring outcomes. Recognizing a chart shape and establishing a profitable trading rule are separate tasks.
Worked example
O100 H110 L100 C110 is exact bullish marubozu. H110.2 L99.9 with O100 C110 gives 10/10.3≈97.1% body coverage, a near-full-bodied case.
Common mistakes and limits
Avoid treating a tolerance-based label as exact or assuming shape guarantees continuation.
Practice
Classify ten candles with both exact and tolerance-based rules. Keep the rules fixed while comparing outcomes.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.