Subscribe to RSS feeds Bulkowski Blog via RSS

Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral.

Picture of Bumper.
Kindle
Paperback
Nook
Picture of the head's law.
Kindle
Paperback
Nook
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Encyclopedia of Chart Patterns 2nd Edition book.

Bulkowski's White Marubozu

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 11/22/2017
23,526 -64.65 -0.3%
9,627 11.94 0.1%
758 -0.24 0.0%
6,867 4.88 0.1%
2,597 -1.95 -0.1%
YTD
19.0%
6.4%
14.9%
27.6%
16.0%
Tom's Targets    Overview: 11/14/2017
23,700 or 22,800 by 12/01/2017
9,300 or 9,800 by 12/01/2017
800 or 750 by 12/01/2017
7,000 or 6,500 by 12/01/2017
2,625 or 2,540 by 12/01/2017

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

White Marubozu Candlestick: Summary

With the white marubozu candlestick, I am reminded of the story, "The Emperor's New Clothes" where the emperor did not wear any clothes. The white marubozu candle has no shadows! If you can call a candle naked, then maybe this is an example. It appears as a tall white blob on the charts, and it acts as a continuation 56% of the time. That type of performance is what I call near random.

$ $ $

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

If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. -- Tom Bulkowski

 

$ $ $

White Marubozu Candlestick: Important Results

Theoretical performance: Continuation
Tested performance: Continuation 56% of the time
Frequency rank: 27
Overall performance rank: 71
Best percentage meeting price target: 79% (bear market, down breakout)
Best average move in 10 days: -4.79% (bear market, down breakout)
Best 10-day performance rank: 26 (bull 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 white marubozu candlestick
White Marubozu
Top of page   More

White Marubozu Candlestick: Discussion

The white marubozu candlestick is a tall white candle with no shadows. It suggests a continuation of the existing price trend but only 56% of the time. Thus, be prepared for price to reverse direction before the breakout or soon thereafter. The frequency rank is high enough, 27, where 1 is the most popular, that you should have no trouble finding this candle in a historical price series. The overall price performance rank is a distant 71 where 1 is best. Thus, do not look for price to breakout and then make a huge move. That could happen but the odds are against it.

The best average move 10 days after a breakout belongs to a bear market where price drops 4.79%. I consider moves of 6% or more to be wonderful, so this falls short. The best performance rank is 26 and that occurs after a downward breakout in a bull market. I think that with many single candle lines, expecting a huge post breakout performance just isn't in the cards.

White Marubozu Candlestick: Identification Guidelines

CharacteristicDiscussion
Number of candle linesOne.
Price trend leading to the patternNone required.
ConfigurationLook for a tall white candlestick with no upper or lower shadows.
Top of page   More

White Marubozu Candlestick: Three Trading Tidbits

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. White marubozu candles that appear within a third of the yearly low perform best -- page 547.
  2. Patterns within a third of the yearly high act as continuations most often -- page 549.
  3. Breakouts below the 50-trading moving average tend to work best -- page 549.

White Marubozu Candlestick: Example

The white marubozu candlestick on the daily scale

This chart shows an example of a white marubozu candlestick at A. The candle is taller than recent ones, it is white, and it has no shadows. That qualifies it as a white marubozu.

This white marubozu appears just after price reverses from down to up. The upturn is not a long one. It lasts just one more day after the white marubozu before pausing and forming a tweezers top candle pattern (two candles sharing the same high price).

The breakout from the white marubozu is upward when price the next day closes above the marubozu. Thus, the candle line acts as a continuation of the brief upward trend already in progress.

Notice how smooth the price trend was on this chart until after the white marubozu candlestick. Such choppy price action in mid June would alert me to a potential problem with the stock. I would avoid trading it for that reason -- at least until it settled down.

-- Thomas Bulkowski

Top of page   More  

See Also

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Being "over the hill" is much better than being under it!