Candles Marubozu - Definition and story of candlesticks

Bullish/bearish Marubozu belongs to the highest strength candlestick bars in popular Japanese candlestick patterns, usually having the following shape:
Bullish Marubozu is a pattern consisting of a strong bullish candle with a long body, and especially without candlestick shadows or very small candlesticks compared to the body length. The smaller the shadow, the better, this is a candle showing bullish power, possibly continuing an uptrend or a reversal from down to up.

Similarly, we have bearish Marubozu which is a strong bearish candlestick pattern, which is likely to fall after this pattern.

We will use the bullish/bearish Marubozu candles to form a complete big wave-catching trading system, based on the strong characteristics of the pattern.

Candle Marubozu - The trading system catches a big wave

Tools:
  • Marubozu bullish/bearish candle
  • Ema 21 cycles
  • Trend line.
Applied on time frames: H1, H4, D1.

In markets: all markets are applicable.

BUYING RULES:
  • The price is above the consistent ema 21 and the sloping up ema 21 represents an uptrend;
  • Price corrects in a downward pullback wave (pullback) to the ema line, drawing a downtrend line connecting the peaks of this reverse wave;
  • But when a bullish Marubozu bar breaks the downtrend line AND the Marubozu bar must be above the ema line;
  • Buy stop above Marubozu candlestick, bottom stop-loss;
  • Take profits by trailing stops to get the most out of the wave.
SALE RULES:
  • The price is below the consistent ema 21 and the downward sloping ema 21 represents a downtrend;
  • Price corrects in the pullback wave up the ema line, drawing a trend line connecting the bottom of this reverse-pull wave;
  • Sell when a bearish marubozu bar breaks the uptrend line AND the Marubozu bar should be below the ema line;
  • Sell stop below Marubozu candlestick bottom, stop loss on top;
  • Take profit by trailing stop following the waves.
Candles Marubozu - Example

Example 1:


The price tends to increase satisfying the conditions. Buy stop above when the bullish Marubozu bar breaks the downtrend line. The stop loss is very short and the take profit is extremely long (trailing stop).

Example 2:


The price meets the conditions of the sale rule. Sell for the first 2 orders, the 3rd order has a stop loss, but still compensates with the huge profit of the first 2 orders. This is the right stuffing method, the trend is very hegemony.

Example 3:


Although the price adjusted to decrease for a long time, it still satisfies the conditions. Catch the rising waves of gold.

Example 4:


This order stops loss

Example 5: