What is a Bearish Marubozu Candlestick?

A Bearish Marubozu is a single, full-bodied red candle.

It has no upper or lower wick/shadow.

Open = High, Close = Low.

This means sellers were in control from the beginning to the end of the session.

It shows strong bearish momentum and is often a sign of a downtrend or reversal.

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Strategy to Use:

1. Trend Reversal Signal:

If the market is in an uptrend and a Bearish Marubozu appears, it can signal a potential reversal.

Indicates that buyers are losing strength and sellers are taking over.

2. Trend Continuation Signal:

In a downtrend, this candle confirms that bearish pressure is still strong and the trend may continue.

3. Wait for Confirmation:

Don’t act on the candle alone.

Wait for the next candle to confirm — if it also closes lower, it increases the probability of a successful trade.

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Entry & Exit Points:

Entry (Sell/Short):

Enter a short position if the next candle opens lower or breaks below the Marubozu’s close.

Or use a breakdown of a nearby support level for entry.

Stop-Loss:

Place the stop-loss just above the open of the Marubozu candle.

Exit (Target):

Set a target at the next major support zone.

You can also use Fibonacci levels or previous swing lows.

Alternatively, use a trailing stop-loss to maximize profits as the price falls.