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Closing Black Marubozu
The difference in appearance between a black marubozu and a closing black marubozu is an upper shadow. The closing black marubozu has one, but the black marubozu does not. Performance is similar for both. They act as continuations of the prevailing price trend, occur often in a historical price series, but overall performance over 10 days is poor (mid list).
Closing Black Marubozu: Important Results
Theoretical performance: Continuation. Tested performance: Continuation 52% of the time Frequency rank: 18 Overall performance rank: 43 Best percentage meeting price target: 76% (bull market, up breakout) Best average move in 10 days: 5.82% (bear market, up breakout) Best 10-day performance rank: 20 (bear market, up breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Closing Black Marubozu |
Closing Black Marubozu: Discussion
The closing black marubozu is a tall black candlestick with an upper shadow but no lower one. It acts as a continuation of the existing price trend 52% of the time, which is just about random. The performance after the breakout is mid list at 43, where 1 is best and 103 worst. The best average move in 10 days is 5.82% and that occurs after an upward breakout in a bear market. Both are counter trend, meaning a bear market sees lower prices over time and the closing black marubozu has a close at the bottom of the candle. Price has to fight its way upward, against the one-day down trend and the bear market to breakout higher. I consider wonderful moves of 6% or more, so the closing black marubozu comes close. That performance also gives the candle its best rank of 20.
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
Closing Black Marubozu: Identification Guidelines
| Characteristic | Discussion |
| Number of candle lines | One. |
| Price trend leading to the pattern | None required. |
| Configuration | Look for a tall black candle with an upper shadow but no lower one. |
Closing Black Marubozu: Three Trading Tidbits
- Closing black marubozu candles that appear within a third of the yearly low perform best — page 515.
- Closing black marubozu candles with tall upper shadows outperform — page 516.
- Closing black marubozu within a third of the yearly low often act as continuation candlesticks — page 516-517.
Closing Black Marubozu: Example
If the candle before B were white, the AB pattern would represent a variation of the falling three methods candlestick. Besides the black candle, the only other glitch I see is that the second candle drops below the high-low range of the first candle (A). Having so many identification rules for the falling three methods candlestick pattern is what makes it so rare.
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