As of 12/06/2024   Indus: 44,643 -123.19 -0.3%     Trans: 16,879 -97.04 -0.6%     Utils: 1,036 -11.79 -1.1%     Nasdaq: 19,860 +159.51 +0.8%     S&P 500: 6,090 +15.16 +0.2%	YTD  +18.4%    +6.2%    +17.4%    +32.3%    +27.7%	Targets    Overview: 12/02/2024     44,000 or 46,000 by 12/15/2024   17,025 or 18,000 by 12/15/2024   1,025 or 1,100 by 12/15/2024   20,000 or 18,500 by 12/15/2024   6,200 or 5,900 by 12/15/2024
Chart Pattern Indicator: on 12/5/24

As of 12/06/2024   Indus: 44,643 -123.19 -0.3%     Trans: 16,879 -97.04 -0.6%     Utils: 1,036 -11.79 -1.1%     Nasdaq: 19,860 +159.51 +0.8%     S&P 500: 6,090 +15.16 +0.2%	YTD  +18.4%    +6.2%    +17.4%    +32.3%    +27.7%
Targets    Overview: 12/02/2024     44,000 or 46,000 by 12/15/2024   17,025 or 18,000 by 12/15/2024   1,025 or 1,100 by 12/15/2024   20,000 or 18,500 by 12/15/2024   6,200 or 5,900 by 12/15/2024
Chart Pattern Indicator: on 12/5/24

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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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.

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

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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

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

• An closing white marubozu has the shadow at the other end!
• An opening white marubozu has the shadow at the other end, too!
• Tall candles show support and resistance.
• Two candlestick tips could improve profitability.
• Candles near the yearly low perform best.
• Chart pattern breakouts: Which candlesticks appear most often the day before breakouts?
• Shadows. Do tall candle shadows predict price turns? Yes and no.
• Tall candles at peaks and valleys. Tall candles appear at turning points.

Being "over the hill" is much better than being under it!