What Is a Marubozu?
A marubozu is a long candle that consists only of the body: the open and close lie at the two ends of the range, and wicks are missing entirely or almost entirely. A bullish marubozu opens at its low and closes at its high; a bearish one opens at the high and closes at the low. The candle shows that one side determined the price throughout the entire period.
The name comes from Japanese candlestick analysis and means something like close-cropped: the candle lacks wicks the way a shaved head lacks hair. Steve Nison described the marubozu and the related belt hold for the West in Japanese Candlestick Charting Techniques (1991).
Among the candlestick patterns, the marubozu is the counterpart of the doji: with the doji, the period ends in balance; with the marubozu, with a clear winner. The family includes the closing marubozu, the belt hold, and the long line, which differ in the side on which a wick may appear.
How Do You Identify a Marubozu?
You identify a marubozu first by the length of the body and then by the ends of the candle. The relatives in the family differ only in where a wick may appear.
- The body is clearly longer than the bodies of the candles before it; a short candle without wicks does not count.
- With the marubozu, both wicks are missing: the candle opens at one end and closes at the other.
- If only the wick on the closing side is missing, it is called a closing marubozu; if only the one on the opening side is missing, an opening marubozu.
- A belt hold is a long candle without a wick on the opening side that runs in the opposite direction after a trend.
- A long line is a long candle with short wicks at both ends.
What Lies Behind the Marubozu?
A bullish marubozu tells of a period in which buyers never gave up control. The open was already the lowest price, and the price rose until the close without sellers being able to push it back noticeably. The close at the high shows that demand lasted until the last minute.
With the bearish marubozu, it is the other way around: sellers pushed from the first price on, and every attempt at a recovery failed to materialize. If one of the two wicks is not missing, this says something about the course of the period: a wick on the opening side means the other side still made an attempt at the beginning; a wick on the closing side means the pressure eased shortly before the end.
The location matters. In the middle of a trend, a marubozu confirms the ongoing move. At the end of a long move, by contrast, the same candle can signal exhaustion: the last latecomers buy in, and after that buyers are missing. If the long candle runs against the previous trend, as with the belt hold, it is a hint of a turn.
What Types Exist?
The variants differ in the side on which a wick appears and in whether a trend has to precede them. The table at the end of the section summarizes them.
Marubozu
The marubozu in the narrow sense has no wick at either end. A bullish one opens at the low and closes at the high, a bearish one the other way around. It shows the greatest one-sidedness a single candle can have.
Closing Marubozu
With the closing marubozu, only the wick on the closing side is missing: a bullish one closes at its high, but may first have fallen somewhat after the open. The close at the extreme shows that the pressure lasted until the end; many traders therefore pay particular attention to this side of the candle.
Opening Marubozu and Belt Hold
If only the wick on the opening side is missing, the candle is called an opening marubozu. If it stands after a trend and runs against it, Nison calls it a belt hold: a bullish belt hold opens at its low after a downtrend and then rises far, a bearish one opens at its high after a rise and falls. The Japanese name comes from sumo, where a wrestler pushes his opponent out of the ring by the belt. The longer the candle, the clearer the hint of a turn.
Long Line
The long line is a long candle with short wicks at both ends; some authors call it a long day. It shows a strong move in which the other side was still able to resist briefly at both ends. On its own, it is a sign of strength, not a turn.
Wicks in Forex and Crypto Trading
In the textbook, the wick is missing entirely. On liquid forex and crypto pairs, which trade in small increments, a tiny wick almost always forms. In practice, a wick that is barely visible compared with the body therefore counts as missing. Judge the candle on the chart by the ratio of wick to body, not by individual prices.
| Variant | Wick on the opening side | Wick on the closing side | Trend before | Meaning |
|---|---|---|---|---|
| Marubozu | None | None | Any | One side dominates the entire period |
| Closing marubozu | Possible | None | Any | Pressure lasts until the close |
| Opening marubozu | None | Possible | Any | Strong start, eased somewhat at the end |
| Belt hold | None | Possible | Against the candle | Hint of a turn |
| Long line | Short | Short | Any | Strong move with some resistance |
When Does a Belt Hold or Marubozu Confirm, and When Does It Not?
A bullish belt hold confirms when the following candles stay above its middle and the price keeps rising; a bearish one when they stay below its middle. According to Nison, the hint is void if the price closes beyond the candle's open, that is, above its high for the bearish belt hold. The old trend has then completely taken back the countermove.
Something similar applies to the marubozu in the middle of a trend: it confirms the move as long as the next candles do not eat up its body again. If the price soon closes beyond its start, the long candle was more of an outlier, for example after a news release. The following chart shows a bearish belt hold that fails in this way.
In the false-signal chart, the price first falls slightly and then rises in several waves. At the end of the rise, a bearish belt hold opens at 106.00, which is also its high, and closes at 104.70; its low is 104.55. The body is 1.30 points long, almost three times as long as the usual bodies before it. The next candle closes at 105.30, the one after it at 106.20, above the high of the belt hold. With that, buyers have fully recovered the long candle; the last candle in the chart closes at 109.30.
Example of Entry, Stop, and Target
A planned trade with a bullish belt hold buys at the close of the candle and places the stop just below its open, which is also its low. If the price falls below it, the countermove has failed. The target is the swing high where the downtrend began.
In the chart, the price falls from the swing high at 106.60 in several waves. Then a bullish belt hold opens at 101.20, which is also its low, rises to 102.82, and closes at 102.65. The body is 1.45 points long, a good three times as long as the usual bodies before it; a short upper wick of 0.17 points remains. A trader buys at the close of 102.65. The stop is just below the open, at 101.10; the risk is 1.55 points. The target is the swing high at 106.60; the price reaches it after 11 candles, which is 3.95 points. This gives a risk/reward ratio of roughly 1:2.5. Because the entry comes only at the close of the long candle, the risk is even slightly larger than the whole body; the longer the belt hold, the further away the stop lies.
How Do You Use the Marubozu and Belt Hold Across Multiple Timeframes?
Long candles without wicks form on every timeframe, on the short ones often because of a single news item or a large order. Only a look at the higher timeframes shows whether the candle starts a move or is merely a short spike.
For example, if the price is rising on the 4h and 1d charts while it pulls back for a few hours on the 1h chart, a bullish belt hold on the 1h chart can signal the end of this pullback; the candle then points in the direction of the main move. A bearish marubozu against the trend of the higher timeframes, by contrast, is often just a sharp pullback. A marubozu on the 1d chart sums up an entire trading day and therefore carries more weight than one on the 1h chart. On the signal page and in the cockpit, you can see which way the trend is currently pointing on each of the eight timeframes.
How Do News and Scheduled Events Affect the Marubozu and Belt Hold?
Many long candles without wicks form directly after a release: the price jumps in one direction and keeps running until the end of the period. Such a candle shows the reaction to a number, not necessarily a lasting change in sentiment, and is not infrequently partly taken back in the following periods.
Check the economic calendar, therefore, to see whether an interest rate decision or a labor market report fell within the time of the candle. The news situation in the cockpit also shows whether the reports on the pair point in the direction of the candle; if so, more speaks for the move holding.
How Do You Use the Marubozu and Belt Hold in the Four Trading Styles?
How much a long candle without wicks counts depends strongly on the timeframe. On short charts, it often forms because of a single order; on the daily chart, it sums up an entire trading day of one-sided pressure.
The Marubozu and Belt Hold in Scalping
In scalping on the 15m and 30m charts, long candles without wicks form above all at the start of sessions and after releases. Many of them result from a single large order and are partly taken back shortly afterward. Scalpers therefore use a marubozu more as a hint of the direction for the next few minutes than as an entry at the close: they wait for a small pullback into the body and enter there in the direction of the candle. A belt hold at a place that also matters on the 1h or 2h chart, for example at the high or low of the current session, deserves more weight than one in the middle of a move. The stop lies beyond the candle's open; the target is often the next high or low of the current session. Because target and stop are only a few points apart, spread and slippage weigh heavily. In the quiet Asian session, long candles are rarer and then often due to news. The holding period is a few minutes to a few hours.
The Marubozu and Belt Hold in Day Trading
In day trading on the 1h and 2h charts, a marubozu often shows that a move within the day is gathering pace, for example on a breakout above the previous day's high. For the larger direction, day traders consult the 4h or 8h chart: a marubozu in the direction of its trend confirms the move, while a belt hold against it is more likely to announce a correction than a turn. The trade is taken after the close of the candle or on a pullback into its body; the stop lies beyond the open or, with very long candles, beyond its middle. Because all positions are closed by the end of the trading day, day traders check before entering whether enough time remains to reach the target. The target is usually the day's next swing high or swing low, and with a belt hold also the start of the move it runs against. A marubozu in the hour of a release should be read with caution. One that forms out of a quiet phase without a scheduled event carries more weight.
The Marubozu and Belt Hold in Swing Trading
In swing trading on the 4h and 8h charts, traders hold positions for days to a few weeks. A belt hold at the end of a decline lasting several days is a hint to be taken seriously here, especially at a zone on the 12h or 1d chart. A marubozu on the 8h chart spans roughly an entire trading session in which one side was in control throughout. Swing traders pay attention to where the candle stands in the trend: at the start of a move it confirms, after a long run it can signal exhaustion. Entry comes at the close of the candle or on a pullback into its body; the stop lies beyond the open. Swing traders often take as their target the swing high or swing low where the move before the candle began, as in the example above. Because positions run overnight and often over the weekend, swing traders allow for gaps at the start of the week in currencies, while cryptocurrencies trade without a break. For many, a bearish marubozu against an open long position is a reason to tighten the stop.
The Marubozu and Belt Hold in Position Trading
In position trading on the 12h and 1d charts, trades last weeks to months. A marubozu on the daily chart sums up an entire trading day of one-sided pressure and is correspondingly rare. Since FinScans has no timeframe higher than 1d, position traders place the candle in context using the course of the 1d chart over several months: does it break out of a long sideways phase, or does it stand at the end of a trend lasting several weeks? In the first case, it can mark the start of a new move; in the second, exhaustion. A belt hold on the daily chart against a trend lasting several weeks is a reason to review open positions and secure part of the profits. Position traders usually open new positions only once further daily candles confirm the direction and interest rate policy and economic data support it. Because the body of a daily candle is long, a stop beyond the open lies far away; this calls for a correspondingly smaller position size.
| Style | Timeframe | Higher timeframe | Holding period | Watch especially |
|---|---|---|---|---|
| Scalping | 15m, 30m | 1h, 2h | Minutes to a few hours | pullback into the body instead of entering at the close |
| Day trading | 1h, 2h | 4h, 8h | Within the day | marubozu without a scheduled event on a breakout above the previous day's high |
| Swing | 4h, 8h | 12h, 1d | Days to a few weeks | belt hold at the end of a multi-day decline at a zone |
| Position | 12h, 1d | 1d over several months | Weeks to months | breakout from a long sideways phase or exhaustion |
Belt Hold or Hammer?
The belt hold and the hammer are both single candles that can announce a turn upward after a downtrend. They form, however, in opposite ways.
With the hammer, the price falls far within the period and is recovered by the close; what remains is a small body with a long lower wick. With the bullish belt hold, the low lies right at the open, and the price then rises for almost the entire period; what remains is a long body without a lower wick. The hammer thus shows a repelled wave of selling, the belt hold an attack by buyers from the start. For the bearish belt hold and the hanging man, everything applies in mirror image.
| Feature | Bullish belt hold | Hammer |
|---|---|---|
| Body | Long | Small |
| Lower wick | None, the open is the low | Long, at least twice as long as the body |
| Course within the period | Buyers in control from the start | First a deep decline, then a recovery |
| Stop in the example | Below the open | Below the low of the wick |
| Bearish counterpart | Bearish belt hold | Hanging man |
What Mistakes Are Common with the Marubozu and Belt Hold?
Most mistakes happen because a long candle without wicks looks very determined and tempts traders to follow it without checking.
- Reading every long candle as a continuation: after a long run, a marubozu can signal exhaustion instead of strength.
- Overrating news candles: a long candle directly after a release shows the reaction to a number and is often partly taken back.
- Overlooking the location: a belt hold at an important support or resistance carries more weight than one in the middle of a move.
- Chasing the price at the close: anyone who enters at the close of a very long candle has the stop far away; a pullback into the body often offers the better entry.
- Setting the stop too tight: if the stop lies inside the body, it is hit by a normal pullback; anyone who does not adjust the position size goes against sound risk management.
How Marubozu Triggers Are Named in FinScans Signals
On the signal page, these triggers appear in the trigger table, each with an arrow: ▲ means FinScans counts the trigger on the bullish side, ▼ on the bearish side. Eight names belong to this page:
- “Marubozu Bullish” (▲) and “Marubozu Bearish” (▼): A long candle without wicks.
- “Closing Marubozu Bullish” (▲) and “Closing Marubozu Bearish” (▼): A long candle without a wick on the closing side.
- “Belt Hold Bullish” (▲) and “Belt Hold Bearish” (▼): A long candle without a wick on the opening side; according to the textbook, at the end of a trend in the opposite direction.
- “Long Line Bullish” (▲) and “Long Line Bearish” (▼): A long candle with short wicks.
For any one candle, FinScans names at most one of these: in the last 30 days, no signal contained more than one of them. The signal page shows no trigger named “Opening Marubozu”. The short counterparts “Short Line Bullish” and “Short Line Bearish” belong to the page about the spinning top. The names describe the shape of the candle; whether a trend ran before it and where the candle stands on the chart is something you check yourself.
The signal page shows no class for candlestick patterns. These triggers almost always appear in signals of their own direction. Such a trigger almost never stands alone: FinScans combines it with the other triggers of the same signal into an overall direction. Whether the signal runs with or against the larger move is shown by the trend across the eight timeframes and the overall assessment.
The following block shows current data on these triggers. The hit rate should always be read relative to the average: if it is above, the trigger has a statistical edge; if it is below, it is better used as a hint than as the sole reason to enter. The rates can vary considerably by trading style, because there is more noise on short timeframes. The distances to target and stop also play a role: a tight stop is hit more often than a wide one, a distant target less often than a near one.
What the Machine Reports, What You Check Yourself
On the signal page, these triggers appear for forex and crypto pairs; their name describes the candle, not its position in the larger picture. Whether a long candle offers a viable setup is something you decide yourself in hybrid trading.
- The machine reports, for example, “Belt Hold Bullish” or “Marubozu Bearish”; you check on the chart whether the candle stands at the start of a move or after a long run.
- The signal page shows the trigger's arrow; you check whether the next candles hold the body or eat it up again.
- The machine provides the trend across eight timeframes; you check whether the candle stands at a zone on the higher chart.
- The data block shows the hit rate so far; you check the economic calendar to see whether the candle formed at the time of a release.
- The signal page gives target and stop; you measure the distance from the entry to beyond the candle's open and work out whether the risk/reward ratio fits your risk management.
Frequently asked questions
Is a Marubozu Bullish or Bearish?
That depends on its color. A bullish marubozu opens at the low and closes at the high and shows buying pressure; a bearish one shows selling pressure. Whether this leads to a continuation or to exhaustion is decided by the location on the chart and by what the next candles do.
What Is the Difference Between a Marubozu and a Belt Hold?
With the marubozu, both wicks are missing; with the belt hold, only the one on the opening side. In addition, according to the textbook, the belt hold requires a trend in the opposite direction and therefore counts as a hint of a turn. A marubozu, by contrast, can stand anywhere on the chart.
How Long Must the Candle Be?
There is no fixed limit; what matters is the comparison with the candles before it. As a rule of thumb, the body should be at least one and a half times as long as the usual bodies of the last candles. A short candle without wicks shows no one-sidedness, only a quiet period.
Why Do Real Candles Almost Always Have a Small Wick?
On liquid markets, trading takes place in very small increments, and a single price beyond the open or close already creates a wick. A wick that is barely visible compared with the body therefore counts as practically missing. Judge the candle by the overall picture, not by a single tick.
Sources
- Nison, Steve: Japanese Candlestick Charting Techniques, New York Institute of Finance, 1991.
- Morris, Gregory L.: Candlestick Charting Explained, McGraw-Hill, 2006.
- Bulkowski, Thomas N.: Encyclopedia of Candlestick Charts, John Wiley & Sons, 2008.