Bearish Marubozu Candlestick on Live Gold

What it shows

Each one gets a red label marked MB over the candle’s high.

How Pravex works it out

1. The bearish marubozu rule never uses a fixed size: a body, open to close, is long when it beats the 14-candle exponential average of bodies and small when it falls short of it.
2. The pattern is one falling candle (close below open) with a long body, above the 14-candle average.
3. Both shadows must be tiny: the upper shadow (high minus open) and the lower shadow (close minus low) may each be no more than 5% of the range.
4. Example numbers, not a live price: open 2,030.0, high 2,030.3, low 2,017.7, close 2,018.0. The range is 12.6, each shadow 0.3, a little over 2% of it. With 12 above the average body, it passes.
5. There is no trend input, so the label can appear anywhere on the chart.

Settings

Setting	Default	What changing it does
Label colour	Red (#F23645)	The fill of the MB label over the high of each candle where the bearish marubozu pattern is complete; its white text needs a colour it reads well on.

How traders read it

The candle shows selling that never paused: no bounce off the low and no early rise above the open. When it breaks a support level that held before, that is a sign the sellers are serious, and a rise back to the middle of the body is the first test.

After a long fall the same candle can be the flush at the end, when the last holders give up. Compare its size with the candles before it, and watch whether the next candle can push lower or stalls right away.

When it misleads

The body is only measured against the 14-candle average, so a modest drop after quiet hours can qualify. With no trend test, the label appears inside ranges, where a strong candle down is often undone. On gold, a marubozu built on one news release can be retraced quickly. A bearish marubozu label on the newest candle is provisional: that candle has not closed, and the shape may stop holding before it does.

Questions and answers

What does a black marubozu mean?

A candle where sellers held control from open to close, with almost no shadows. It reads as bearish strength, most of all when it breaks a level.

What makes a marubozu in Pravex?

A body longer than the 14-candle average body and both shadows at most 5% of the candle’s range.

What is the opposite of a bearish marubozu?

The bullish (white) marubozu, a long rising candle that opens at its low and closes at its high.

Related: Marubozu White - Bullish, Three Black Crows - Bearish, Kicking - Bearish, All Candlestick Patterns, every indicator.