What is Marubozu?
Marubozu shows one-sided session control — open near low, close near high (bull) or inverse.
Formula
Bullish marubozu: Open = session low, Close = session high. Buyers absorbed every seller from open to close.
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Marubozu shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
Marubozu on Nifty (24,300): on the 15-minute chart, combine with session VWAP and 9:15–10:00 liquidity — index marubozu signals misfire on expiry Tuesdays without volume confirmation.
Reliance Industries perspective
Marubozu on Reliance at ₹1,300: daily vs hourly settings diverge around results and ex-dividend dates; note corporate events in journal when marubozu readings spike.
Bank Nifty futures perspective
Marubozu on Bank Nifty futures (55,000): first-hour signals differ from post-14:30 behaviour; avoid standalone entries when banking names lead the move.
How to validate
- Forward-test Marubozu on paper or sim for two weeks after rule changes.
- Validate only on trades where Marubozu settings matched the written playbook.
- Split results by trending vs range weeks on Nifty before trusting the signal.
- Require higher-timeframe bias agreement if that is part of your rule.
How to track in TradeLyser
- Add Marubozu reading to trade entry notes (value + timeframe).
- Create tags: “Marubozu aligned” / “Marubozu ignored”.
- Monthly: filter trades by alignment tag and compare win rate and avg R.
- Screenshot chart context for mentor review on disputed trades.
Best practices
- Combine Marubozu with higher-timeframe bias — not as a lone trigger.
- Avoid curve-fitting settings on less than three months of tagged data.
- Refresh playbook screenshots when changing Marubozu parameters.
- Skip trading when Marubozu conflicts with written risk limits.
Common pitfalls
- Treating Marubozu as a guaranteed reversal signal.
- Optimising parameters on one bullish month only.
- Trading against higher-timeframe bias because Marubozu “said so”.
- Failing to log when you overrode Marubozu discretionally.
How to use this in TradeLyser
Log marubozu at breakout level; review follow-through next session.
Related terms
A breakout occurs when price closes beyond a boundary — range high, triangle, or prior day level — that traders were watching.
A candlestick summarises price action for a timeframe: body shows open-to-close range; wicks show extremes. Patterns are context tools, not guarantees.
Momentum trading enters in the direction of recent strength, expecting continuation short term.
Volume is the number of shares or contracts traded. Rising price on rising volume suggests conviction; thin volume breakouts fail more often.
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