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Candles scan

Bullish Marubozu Screener

This scan finds stocks that printed a bullish marubozu (a green candle whose body fills at least 90% of the day's range) and closed above their 20-day high.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: bullish marubozu and close above 20 day high

  1. Bullish marubozu
  2. Close > 20-day high

Find US stocks where today shows a bullish marubozu; and the closing price is above the highest high of the last 20 days.

Formula view
pattern(maru)
AND close > highest(high, 20, before_today)
Example chart: Bullish marubozu breakoutDaily candles of a made-up sample stock with 20-day high (before today). The shaded day is the day the scan fired.
  • 20-day high (before today)
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Marubozu is a Japanese word often translated as "bald" or "close-cropped": the candle has little or no wicks. A bullish marubozu opens near the low and closes near the high, so buyers were in control from the first trade to the last.

On its own, it shows strength for one day. Together with a break of the 20-day high, it shows strength exactly where it counts: at a breakout level.

How traders use it

  • Swing traders use the candle's low or its midpoint as a stop.
  • Strong closes at the high often follow through the next day, but big gaps up can fade.
  • Volume above average makes the signal stronger.

Watch out for

  • A big candle means a wide stop. Adjust your position size.
  • After a long run, a marubozu can be an exhaustion move.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is a bullish marubozu?

A green candle with almost no upper or lower wick: it opened near the low and closed near the high. Chalni needs the body to be at least 90% of the day's range.

Is a marubozu a reversal or a continuation pattern?

It can be either. In an uptrend breakout it is usually read as continuation; after a fall it can signal a turn.

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