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.
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
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.
I like how you think, numbers don’t lie
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.