What do you think of the EUR/USD? 5 min Chart?
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What do you think of the EUR/USD? 5 min chart?
When use 5 min, also use day time frame at same time
because it is very important to know where is 5 min chart price position at daily time frame.
5 minutes time frame is short term frame
every 5 minutes new candlestick appear.
so each candlestick are low quality.
Every daily time frame candlestick chart refresh once a day
so quality is high
so we should use
high quality = daily candlestick chart.
this is candlestick basic.
The word Marubozu means “Bald” in Japanese.
We will understand the context of the terminology soon.
There are two types of marubozu – the bullish marubozu and the bearish marubozu.
Marubozu is probably the only candlestick pattern which violates rule of look for prior trend.
A Marubuzo can appear anywhere in the chart irrespective of the prior trend, the trading implication remains the same.
Marubozu is a candlestick with no upper and lower shadow (therefore appearing bald).
A Marubuzo has just the real body as shown below.
However there are exceptions to this.
The red candle represents the bearish marubuzo and the green represents the bullish marubuzo.
The absence of the upper and lower shadow in a bullish marubuzo implies that the low is equal to the open and the high is equal to the close.
A bullish marubuzo indicates that there is so much buying interest in the stock that the market participants were willing to buy the stock at every price point during the day.
It does not matter what the prior trend has been, the action on the marubuzo day suggests that the sentiment has changed and the stock in now bullish.
Hence a trader should look at buying opportunities with the occurrence of a bullish marubuzo.
The buy price should be around the closing price of the marubuzo.
Bearish Marubuzo indicates extreme bearishness.
Here the open is equal to the high and close is equal to low.
A bearish marubuzo indicates that there is so much selling pressure in the stock that the market participants actually sold at every price point during the day.
It does not matter what the prior trend has been, the action on the marubuzo day suggests that the sentiment has changed and the stock is now bearish.
The sell price should be around the closing price of the marubuzo.