Candle Power: Marubozu & Extended Range Bars Explained 📝🔥
If you want to spot strong market momentum at a glance — these are the candlesticks you NEED to understand.
1. Marubozu Candlestick
What is it?
A full-bodied candle with little to no wick. It shows strong conviction by either buyers or sellers.
Types:
Bullish Marubozu: Opens at the low, closes at the high = full buyer control.
Bearish Marubozu: Opens at the high, closes at the low = full seller dominance.
What it tells you:
Pure momentum. No hesitation. Great for spotting the start of a strong move or trend continuation.
How to use it:
In uptrend: Bullish Marubozu = trend continuation signal.
At resistance: Bearish Marubozu = possible breakout or trend reversal.
Combine with volume for stronger confirmation.
Example Setup:
Price breaks out of consolidation with a Bullish Marubozu + volume spike = ideal long entry.
2. Extended Range Candle (ERC)
What is it?
A candle that is significantly larger than recent candles — shows a sudden burst of volatility and power.
Why it matters:
ERCs are often triggered by news, big volume, or breakout moves. They can signal:
Breakouts from ranges or patterns
End of consolidation
Start of impulsive waves
How to use it:
Wait for ERC to break key level
Enter on next candle if it confirms the move
Use the candle's high/low as SL reference
Pro Tip:
ERCs near support/resistance zones are especially powerful. Pair them with RSI/MACD for confirmation.
Quick Summary:
• Marubozu = clean power candle with full control
• ERC = sudden, aggressive move that stands out
Both are great for momentum-based entries when backed by structure and volume.
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