The Black Marubozu (meaning ‘bald head’ or ‘shaved head’ in Japanese) is a single-candle pattern. Characterized by a black (or red) bodied candle with no wick (or shadow), the Black Marubozu is a bearish candle whereby the opening price is equal to the high of the day, and the closing price is equal to the low of the day.
Indicating that the market opened and closed at the extreme levels of that candle, the Black Marubozu may be long or short bodied and may form part of either a reversal or continuation pattern depending on its location within the current trend.
Although Bulkowski suggests the signal performance is near random, a Black Marubozu appearing in a downtrend may suggest its continuation, especially if it appears after a price gap. In a uptrend, a Black Marubozu may form part of a bearish reversal pattern, such as a Bearish Engulfing.