As of 09/18/2020
  Indus: 27,657 -244.56 -0.9%  
  Trans: 11,432 -120.44 -1.0%  
  Utils: 798 -12.86 -1.6%  
  Nasdaq: 10,793 -117.00 -1.1%  
  S&P 500: 3,319 -37.54 -1.1%  
YTD
-3.1%  
 +4.9%  
-9.2%  
 +20.3%  
 +2.7%  
  Targets    Overview: 09/14/2020  
  Up arrow29,400 or 26,700 by 10/01/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20
As of 09/18/2020
  Indus: 27,657 -244.56 -0.9%  
  Trans: 11,432 -120.44 -1.0%  
  Utils: 798 -12.86 -1.6%  
  Nasdaq: 10,793 -117.00 -1.1%  
  S&P 500: 3,319 -37.54 -1.1%  
YTD
-3.1%  
 +4.9%  
-9.2%  
 +20.3%  
 +2.7%  
  Targets    Overview: 09/14/2020  
  Up arrow29,400 or 26,700 by 10/01/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20

Bulkowski on the White Marubozu Candlestick

 

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.

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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 the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

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Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

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

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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.

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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

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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:  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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