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Welcome to FIN-TECHI! greetings from author.

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What is a marubuzu?



In this article you would find what to do after a marubozu.

Key takeaways:
ü  Remember the rules based on which candlesticks work
ü  Marubozu is the only pattern which violates rule number 3 i.e Look for prior trend
ü  A bullish marubozu indicates bullishness
o    Buy around the closing price of a bullish marubozu
o    Keep the low of the marubozu as the stoploss
ü  A bearish marubozu indicates bearishness
o    Sell around the closing price of a bearish marubozu
o    Keep the high of the marubozu as the stoploss
ü  An aggressive trader can place the trade on the same day as the pattern forms
ü  Risk averse traders can place the trade on the next day after ensuring that it obeys rule number 1 i.e Buy strength, and Sell weakness
ü  An abnormal candle lengths should not be traded
o    Short candle indicates subdued activity
o    Long candle indicates extreme activity, however placing stoploss becomes an issue.


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