How to Use Marubozu Candlestick Pattern to Predict the Trend Direction

The Marubozu candlestick is a lesser-known pattern among crypto traders, as it’s rare to find it on trading charts. However, Marubozu formations are easy to identify once you know what to look for. Once the Marubozu pattern is spotted, you can determine how effective its signal may be based on the pattern’s location within a larger trend.

While not occurring frequently, Marubozu patterns can be found on any chart time frame for any cryptocurrency. In this article, we’ll discuss what the Marubozu candlestick pattern looks like, and how to trade it once you’ve spotted it.

We’ll also review other indicators you can use to confirm a Marubozu pattern, and what limitations exist for trading it.

What Is the Marubozu Candlestick Pattern?

A one-candle pattern, the Marubozu candles look like a rectangular block because it has no wicks (or upper and lower shadows). It is a technical indicator used to predict the future direction of an asset’s price.