Marubozu — Strong Trend Continuation Candle

Marubozu means “shaved head” in Japanese — a candle with no wicks. Open at one extreme, close at the other. Pure dominance of one side. On XAUUSD, marubozu candles signal explosive continuation.

📚 What is the Marubozu?

Marubozu has little to no upper or lower wicks.

Open at one extreme, close at the opposite extreme.

Bullish Marubozu: opens at low, closes at high.

Bearish Marubozu: opens at high, closes at low.

Represents complete one-sided control.

🔍 How to Identify

• No upper wick OR no lower wick (or both absent).
• Large body (significantly larger than recent average).
• Strong volume typical.
• Location matters — marubozu at breakouts = high-conviction continuation.
• Marubozu at extremes of trend = potential reversal warning.

🧠 Market Psychology

One side completely dominated the session — opposite side gave zero pushback. Buyers (or sellers) entered at open and maintained pressure until close. Highest conviction one-bar signal.

💼 Trading Rules

🥇 XAUUSD-Specific Notes

• XAUUSD marubozu on H1 / H4 = institutional impulse.
• Often appears at breakouts.
• Marubozu against trend at extreme = reversal warning, not continuation.
• Volume confirms institutional involvement.

✅ Confluence Checklist

Use these criteria to validate the setup before entry. The more boxes checked, the higher the probability:

• Marubozu in direction of broader trend.
• Above-average volume.
• Forms on breakout of key SR.
• Aligned macro context.
• Next candle continues direction.

⚠️ Common Mistakes to Avoid

🎯 The Bottom Line

Marubozu on XAUUSD H1/H4 in trend direction = institutional continuation impulse. Trade with the candle, target the next major level.

Part of the Best Trade Logic Pattern Library · 27 essential patterns for XAUUSD & forex traders