Recently, I’ve seen many traders who haven't fully understood the bearish marubozu, even though this pattern is quite powerful for predicting price movements. So I want to share my experience using this pattern.

So a bearish marubozu is basically a red candle with a full body and no tails at the top or bottom. It means from open to close, sellers are completely dominant. Open = Highest, Close = Lowest. This pattern indicates a truly strong bearish momentum and often serves as an early signal of a downtrend or a reversal.

In trading practice, I notice that bearish marubozu has two main scenarios. First, if the market is in an uptrend and suddenly this pattern appears, it could be a warning that buyers are losing steam and sellers are starting to take control. The second scenario, in an established downtrend, confirms that bearish pressure remains solid and the trend is likely to continue.

But don’t act immediately just by looking at one candle. I always wait for the next candle to confirm. If the second candle also closes lower, then the probability of a higher win rate increases significantly.

For entry, I usually go short if the next candle opens lower or breaks below the close of the previous bearish marubozu. Or I can also wait for the price to touch the nearest support first before entering. I always place my stop-loss right above the open of the marubozu candle, so if a false breakout occurs, I am already safe.

My profit target is set at the next major support zone, or I can use Fibonacci levels or the previous swing low. Honestly, trailing stop-loss is also effective if you want to maximize profit as the price drops. Every trader has different preferences, but the principle is the same — a bearish marubozu is a solid tool when used with discipline and proper confirmation.