Definition:

The Black Closing Marubozu is a single candlestick pattern characterized by its long black body. It does not have a lower shadow but it has an upper shadow. It is an extremely strong bearish candlestick pattern.

Recognition Criteria:

1. A Black Closing Marubozu has an upper shadow.
2. The day opens, prices slightly move up creating the upper shadow but then prices start moving down all day long creating the long black body.
3. Then the day closes at the low of the day which explains the absence of the lower shadow.

Explanation:

The Black Closing Marubozu is a single candlestick pattern. As mentioned above; it is a long black body showing a shadow on the open but no shadow at close. This shows that the day opened and then prices initially went up but then they reversed direction moving below the opening level and finally closed at the low of the day. It is a day of the bears. With the bears in full force; it may show either the continuation of a downtrend or a final sell off attempt just before the bulls regain control.

Important Factors:

A Black Closing Marubozu can be either the initial phase of a bearish continuation pattern or it may signal a bullish reversal depending on the preceding day's candlesticks.

The Black Opening Marubozu is a single candlestick pattern with low reliability. It only reflects one day's trading and may be pointing either continuation or reversal. Hence it must be considered with other candlesticks to better judge the direction of the trend.