Black Marubozu

Black Marubozu for NT8

The Black Marubozu pattern is very similar to the bearish belthold. The only difference is that it does not allow for a wick at the lower end of the candle.Check out the video below to learn more:

What is a Black Marubozu

A Black Marubozu opens at the highest price of the candle, closing at the bar low. It is consequently a large body down-close. To determine the large body requirement, a minimum threshold has to be met. This is done by making a comparison to the average bar size found in the reference period. The minimum large body threshold, as well as the reference period used to establish the average, are adjustable.

Users may furthermore modify the wick requirement. By default we’ve allowed for very small upper and lower shadows. The maximum permitted ratio is calculated by dividing the upper or lower shadow by the body range. Finally, for this pattern, it is required that the proceeding candle was an up-close.

When identified as a reversal, the Black Marubozu will occur during a minor bullish swing trend. The trend bias specifications are user selectable via the indicator dialogue box, as per the deviation type and multiplier settings. The bullish equivalent to this pattern is the White Marubozu.

These patterns should be combined with other technical tools for confirmation. Our Indicator Library features categories for advanced momentum oscillators, volume analysis and / or channel indicators. A post on how to combine with Fast Stochastic was discussed here.

Other bearish candlestick patterns

Other bearish candlestick patterns include the bearish belthold, bearish engulfing, bearish harami, bearish harami cross, dark cloud cover, shooting star, gravestone doji, hanging man, evening star, evening doji star, long black candle, tweezers top, three black crows and the falling three methods.

TheBlack Marubozu and the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.