As of 12/06/2019
  Indus: 28,015 +337.27 +1.2%  
  Trans: 10,709 +133.66 +1.3%  
  Utils: 855 -1.82 -0.2%  
  Nasdaq: 8,657 +86.13 +1.0%  
  S&P 500: 3,146 +28.48 +0.9%  
YTD
 +20.1%  
 +16.8%  
 +19.9%  
 +30.5%  
 +25.5%  
  Targets    Overview: 11/29/2019  
  Up arrow28,600 or 27,600 by 12/15/2019
  Up arrow11,300 or 10,500 by 12/15/2019
  Up arrow875 or 830 by 12/15/2019
  Up arrow8,900 or 8,400 by 12/15/2019
  Up arrow3,250 or 3,075 by 12/15/2019
As of 12/06/2019
  Indus: 28,015 +337.27 +1.2%  
  Trans: 10,709 +133.66 +1.3%  
  Utils: 855 -1.82 -0.2%  
  Nasdaq: 8,657 +86.13 +1.0%  
  S&P 500: 3,146 +28.48 +0.9%  
YTD
 +20.1%  
 +16.8%  
 +19.9%  
 +30.5%  
 +25.5%  
  Targets    Overview: 11/29/2019  
  Up arrow28,600 or 27,600 by 12/15/2019
  Up arrow11,300 or 10,500 by 12/15/2019
  Up arrow875 or 830 by 12/15/2019
  Up arrow8,900 or 8,400 by 12/15/2019
  Up arrow3,250 or 3,075 by 12/15/2019

Bulkowski's Closing White Marubozu

 

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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-- Tom Bulkowski

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The closing white marubozu candlestick shares a lot with watching grass grow: neither is very exciting. The candlestick acts as a continuation pattern 55% of the time, but that is what I call near random. Overall performance, rank 70, places the candlestick well behind the pack. Is there anything redeeming about the closing white marubozu? Let’s take a closer look.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
Other Examples
See Also

Closing White Marubozu Important Results

Theoretical performance: Continuation
Tested performance: Continuation 55% of the time
Frequency rank: 15
Overall performance rank: 70
Best percentage meeting price target: 73% (bear market, down breakout)
Best average move in 10 days: -5.36% (bear market, down breakout)
Best 10-day performance rank: 27 (bear market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal closing white marubozu candlestick
Closing White Marubozu

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Closing White Marubozu Discussion

The closing white marubozu candlestick is a tall white candle with no upper shadow, but it does have a leg to stand on (a lower shadow). It acts as a continuation of the prevailing price trend. With a frequency rank of 15, it is as common as ants at a picnic. Unfortunately the overall performance rank is a lousy 70. After the breakout, price does not trend far, which is why the rank is so poor (1 is best out of 103 candlestick types).

The best average move 10 days after the breakout is a respectable drop of 5.36%, and that occurs after a downward breakout in a bear market, placing the performance rank at 27, too.

Closing White Marubozu Identification Guidelines

CharacteristicDiscussion
Number of candle linesOne.
Price trend leading to the patternNone required.
ConfigurationLook for a tall white candle with a lower shadow but no upper one.

Three Trading Tidbits for Closing White Marubozu

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Closing white marubozu candles that appear within a third of the yearly low perform best -- page 523.
  2. Closing white marubozu candles taller than the median show price that moves about 50% farther after the breakout than those shorter than the median -- page 523.
  3. Closing white marubozu within a third of the yearly high tend to act as continuations most often -- page 525.

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Closing White Marubozu Example

The closing white marubozu candlestick on the daily scale

The closing white marubozu candle appears in the daily chart at A. It is a tall white candlestick with a lower shadow and price closes at the high for the day, meaning it has no upper shadow. This one appears in an upward price trend, but the trend could just as easily have been downward. The breakout is upward when price closes above the top of the closing white marubozu candle the next day.

You might think that the closing white marubozu begins a three white soldiers candlestick pattern, but this example has two flaws. First, the price trend is upward instead of downward and second, price should open within the body of the prior candle. It does not during the second day of the three candle line pattern. In other words, the bodies should overlap more than they do.

-- Thomas Bulkowski

 

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Other Closing White Marubozu Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:      New                  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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