Unit 2 · Single-Candle Signals

The Marubozu — the statement candle

No wicks, no debate: one side took the whole session.

What you see

A full-bodied candle with no wicks (or barely any): green opens at the low and closes at the high; red does the opposite.

What it means

One side controlled 100% of the session. Green = pure demand, red = pure supply.

How it is traded

A green marubozu breaking a resistance level is a textbook breakout entry; the stop goes below the candle's low (which is also its open).

What comes next

A green marubozu usually extends for at least one more leg; a red one mirrors it lower. The exception is the blow-off after an extended run, where the reversal candle often prints within days.

How it fails

A marubozu at the very end of an extended move can be a blow-off/cluster of stop-losses — the reversal candle often follows within days.

Quick check

A green marubozu blasts through a resistance level. The textbook play is…
  • The breakout entry, stop below the candle low
  • Buy the next ten candles blindly
  • Short against it
  • Do nothing, ever

A full-body candle closing through a level is the cleanest breakout print. The invalidation is simple: back below the candle low means the break failed.

Play the interactive version →

This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.

Educational content only — not financial advice.