marubozu (3)


The trader’s dilemma: Even when you see a strong reversal pattern on a chart, how do you know it’s the real thing? The answer is that any indicator needs to be independently confirmed. This is where East (candlesticks) meets West (traditional technical analysis).

One of the favorite reversal signals used by day traders and swing traders is the volume spike. This applies especially on sessions with an unusually small trading range, the so-called narrow range day (NRD). So an NRD with heavy volume

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Candlesticks - real body ranges


When it comes to chart analysis, unusually large and small ranges have a lot of meaning. Measuring the distance between opening and closing price tells you a lot when trends develop or begin to lose momentum. Some specific patterns are excellent gauges of when reversal in the trend is likely to occur.

            First a few terms: The “real body” is the range between opening and closing price, shown as a rectangle in the candlestick, which is either white (prices moved up) or black (prices move

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In Japanese, "marubozu" means "with little hair." This is a reference to the expected small or non-existent upper or lower shadows on this candlestick.

The black marubozu is one variety of a long black candlestick and may have small upper and lower shadows. However, these will be quite small compared to the non-marubozu long black candlestick, which may have much longer upper or lower shadows. The appearance of the black marubozu is bearish because, like all black sessions, it opens at the top[ a

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