Just realized a lot of traders miss this one. The bearish marubozu is honestly one of the cleanest signals you can spot on a chart. It's that full red candle with zero wicks - completely flat top and bottom. Open equals high, close equals low. That's it. No ambiguity, no shadows. When you see it, sellers were running the show the entire session.



Here's why this matters. A bearish marubozu shows serious selling pressure. If you're watching an uptrend and suddenly this candle appears, that's your first warning that momentum might be flipping. Buyers are losing their grip, sellers stepping in. Could be a reversal brewing.

But here's the thing - don't just react to one candle. That's how you get stopped out. Wait for confirmation. If the next candle also closes lower, now you've got something worth acting on. That's when the probability actually shifts in your favor.

On the entry side, you can go short once that confirmation candle opens lower, or wait for a break below the marubozu's close. Some traders prefer using a nearby support level breakdown instead. Your stop loss sits just above where the candle opened - clean and simple.

For targets, look at the next major support zone. Fibonacci levels work too, or just reference previous swing lows. If you want to be aggressive, throw a trailing stop on it and let it ride as price drops. The bearish marubozu setup gives you that flexibility.

In a downtrend, this candle just confirms sellers are still in control. Trend continuation play. Either way, whether it's reversal or continuation, the pattern itself is telling you the same story - bearish pressure is real and concentrated.
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