It is fairly easy to identify a marubozu pattern because it is a single candlestick having a real body without any kind of shadows. Typically, when bullish, they are white or green on stock charts and when bearish, they are red or black. In bearish marubozu, the open price is equal to the high price and the close price is equal to the low price. For bullish marubozu, the open price is equal to the low price and the close price is the same as the high price.
The identification mark for an ideal spinning top will be:
- A large real body
- There will be no shadow at either sides of the candle
- The color of the candle will be of a significant meaning
In actual market conditions, a perfect marubozu is rare. Therefore, there is a minor difference sometimes – usually less than 0.01 percent of the candle range, between the open/close prices with high/low price is neglected when identifying a marubozu.
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