Bearish Marubozu

BearishContinuationBeginner

One huge red candle, top to bottom with no wicks. Sellers never let up.

Verdict: SkipBitcoin 4H: 11 trades, won 36%, avg trade −2.0% vs random day −0.2% (too few trades to judge). Backtest

Downtrend
Bearish Marubozu: textbook shape, step by step

Price is already heading down. The bounces are getting weaker.

step 1/6

Trade rules

DirectionShort (sell)
EntryIn a downtrend, a candle CLOSES below the bearish marubozu's low within 3 candles.
Cancelled ifPrice trades above the marubozu's high before that close.
Target2x the candle, projected from the breakout
3 common mistakes
  • Shorting at the marubozu close, after the whole move already happened.
  • Using the same position size as usual: the stop is a full candle away.
  • Counting any big red candle: with long wicks it shows buyers fighting back.

Backtest

same rules every time · equal size · no fees · method
MarketTradesWonAvg tradeRandom day
Bitcoin · 4H · 2017-2026 · too few trades to judge1136%−2.01%−0.21%
US large caps (50) · 1D · 2016-20268143%−0.43%−0.88%

Verdict: SkipLost money on average on US large caps. Bitcoin had too few signals to judge.

pattern −35%random −71%
US large caps (50) 1D: pattern −35% vs random day −71% over 81 trades

Real examples

Bitcoin · 4H

Breakout Dec 3, 2021, exit Dec 4, 2021 (target)+7.54%
Marubozu lowDowntrend59,177 · Nov 30, 2021Marubozu55,975 · Dec 3, 2021Confirmed
Bitcoin 4H, real candles from Nov 30, 2021

Caterpillar · 1D

Breakout Mar 11, 2020, exit Mar 12, 2020 (target)+12.42%
Marubozu lowDowntrend142.70 · Jan 24, 2020Marubozu112.99 · Mar 9, 2020Confirmed
Caterpillar 1D, real candles from Jan 24, 2020

Nike · 1D

trapBreakout May 12, 2026, exit May 20, 2026 (stop)−4.47%
Marubozu lowDowntrend53.11 · Mar 31, 2026Marubozu44.07 · May 11, 2026Confirmed
Nike 1D, real candles from Mar 31, 2026