Bearish marubozu: does the fall continue?
A bearish marubozu is a big red candle with almost no wicks: it opens near the high and closes near the low. Sellers controlled the whole session.
When “Bearish marubozu” appeared, NIFTY 200 stocks were lower 12 trading days later 43.7% of the time, against 44.7% after any day: about the same as picking a random day.
| After | Higher | Average move | Median move | Higher after any day |
|---|---|---|---|---|
| 5 trading days | 53.0% | +0.5% | +0.3% | 53.9% |
| 12 trading days | 56.3% | +1.4% | +1.0% | 55.3% |
| 20 trading days | 56.5% | +1.7% | +1.3% | 56.8% |
Year by year
| Year | Signals | Higher after 12 days | Any day |
|---|---|---|---|
| 2021 | 217 | 53.0% | 54.4% |
| 2022 | 416 | 50.7% | 52.1% |
| 2023 | 410 | 64.9% | 61.3% |
| 2024 | 386 | 57.0% | 53.7% |
| 2025 | 266 | 53.8% | 53.1% |
| Large cap only | 898 | 55.8% | |
| Mid cap only | 797 | 57.0% |
What it is
A bearish marubozu is a big red candle with almost no wicks: it opens near the high and closes near the low. Sellers controlled the whole session.
How we detected it
A red candle whose body is at least 85% of the day’s range, and whose range is at least 1.3 times the average daily range of the 14 sessions ending three days earlier. There is no trend check. We count the day it forms.
How traders read it
One heavy day of selling can be news that is quickly absorbed. Traders look for it breaking support, and for the next days staying below its midpoint, before reading it as a turn.
A signal is a probability, not a promise
Even the most reliable signal in this study was followed by the opposite move 37% of the time. A signal tilts the odds; it doesn’t decide the outcome.
Signals work better when they agree with the trend and with each other. Whatever the signal, decide your stop-loss before you act.
Practise spotting it, free
The Marubozu chapter teaches this signal in five minutes, then you call real NSE charts and get graded on your reasoning.
Common questions
Does the bearish marubozu signal work on Indian stocks?
When “Bearish marubozu” appeared, NIFTY 200 stocks were lower 12 trading days later 43.7% of the time, against 44.7% after any day: about the same as picking a random day. No single signal is reliable on its own; traders combine it with the trend and manage risk with a stop-loss.
How often did stocks rise after this signal?
Across 1,695 signals on 182 NIFTY 200 stocks (2021–2025), the price was higher after 5, 12 and 20 trading days 53.0%, 56.3%, 56.5% of the time. After any day it was 53.9%, 55.3%, 56.8%.
How is “Bearish marubozu” defined here?
A red candle whose body is at least 85% of the day’s range, and whose range is at least 1.3 times the average daily range of the 14 sessions ending three days earlier. There is no trend check. We count the day it forms.
How these numbers were made
We ran the same signal detector MarketSeekho uses to grade players over every trading day of 187 NIFTY 200 stocks, Jan 2021 to Oct 2025, using NSE end-of-day prices (1,54,833 stock-days). We counted the first day a signal appeared, then ignored the same signal on the same stock for 12 trading days so results don’t overlap. Windows with splits, bonuses or trading halts were left out.
“Any day” is the baseline: the same measure after every day in the data, signal or not. It matters because 2021–2025 was mostly a rising market, so stocks were higher after 12 days more often than not anyway. Past results don’t predict future ones, and this is not investment advice.