The marubozu candlestick pattern is formed by a single candle.
In the Japanese language, the word Marubozu means "Bald Head" or "Shaved Head"
Deriving that, a perfect marubozu means a candle with no upper or lower shadow.
It will only have a real body.
A marubozu candle can be of two types
There are three types of marubozu candles:
If the bullish marubozu appears in an uptrend it strongly implies a trend continuation. But while appearing in a downtrend, it indicates a trend reversal, that the market's sentiment has changed and the stock is now bullish.
If the bearish marubozu appears in a downtrend, it denotes a strong trend continuation. But appearing in an uptrend, it works as a trend reversal pattern, i.e, that the market's sentiment has changed and the stock is now bearish.