Marubozou candlestick

Basically marubozous are candlesticks with no shadow
So what do you classify as a candlestick with the body of a marubozou but a very little or faint shadow

Marubozu can have a short wick above or below the main body.

Whether they have a wick or not and whether it is above or below, they don’t mean much on their own.

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Thanks a lot

Actually, it does!

On a 1 or 5-minute chart it is losing its magical power but on a daily chart it is getting quite useful both for entry and exit

@sam_ebun the wick limit in S&P500 is around $2. Platinum and Gold - the same. As for the other markets you have to test how long wick size can be allowed

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Well I’ve certainly toyed with the idea of buying level with the high of a strongly bullish day like one of these but I’d like to see some stats to back up the approach and particularly hear from successful users of such a tactic how they place their stops.

They’re usually still considered a marubozu, but also generally known as a long candle.

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I like how you think, numbers don’t lie :slight_smile:

My experience suggests that buying at its high is not bringing good results. Only around 56% of the time you can expect the next one to close in the direction. The entry comes earlier. If it meets certain requirements with a quite high probability such candlestick will mark the top.

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