Lesson 04 — The marubozu candle
A marubozu is a candle with no (or near‑no) wicks. It signals a clear imbalance between buyers and sellers on the chosen timeframe. First learn to recognise it, then learn to place it in chart context — an isolated marubozu says nothing.
Characteristic: long body, very short or non‑existent wicks. Open is near the low (bullish) or high (bearish) of the session, close is at the opposite end.
Meaning: one side of the market controlled the whole session. It is a momentum signal, not an entry signal. An isolated marubozu is never a trade — it is information.
Context: a bullish marubozu at the top of a mature uptrend can signal exhaustion (climax buying). The same candle at the bottom of a consolidation after a downtrend can signal a possible reversal.
Classic mistake: confusing a marubozu with a merely "large" candle. Measure the body/wick ratio. Below 80%, it is not a marubozu.
In the full lesson, you identify 8 marubozu candles across 24 historical EUR/USD sessions. You justify your reasoning. nkNOWTrade corrects you and queues the quiz.