Market reversal with Marubozu Line and Adam and Eve

(Last Updated On: June 22, 2018)

Market reversal with Marubozu Line and Adam and Eve

This is the hardest part of trading. If you followed me back in Dec or Jan with the Dukascopy forex trading, I found there were so many false positives with this type of trading. I am hoping these unknown indicators of Marubozu Line and Adam and Eve. Do remember I also failed with sub minute time frames as well. Boo to that. I just found the markets are way too noisy at that timeframe. As a result, I really like the timeframe of daily which all of the recent postings use. I also like hourly but that is more for intraday analysis.

 

Here is a list of sources that you could use to refer to these trading ideas.:

Adam and Eve Pattern 

http://thepatternsite.com/aedb.html <– good conditions from a technical analysis book

http://thepatternsite.com/aedt.html

http://thepatternsite.com/aedt.html

Make sure to understand risk management techniques when apply this http://technical.traders.com/tradersonline/display.asp?art=2709

Here is the closest source code example I could get with MT4

https://www.mql5.com/en/market/product/5689#description

 

Marubozu line with candlesticks

Marubozu Line and Opening/Closing Marubozu Line

(this has a great description)

 

Depending on where a Marubozu is located and what color it is, you can make predictions:

  • If a White Marubozu occurs at the end of an uptrend, a continuation is likely.
  • If a White Marubozu occurs at the end of a downtrend, a reversal is likely.
  • If a Black Marubozu occurs at the end of a downtrend, a continuation is likely.
  • If a Black Marubozu occurs at the end of an uptrend, a reversal is likely.
  • However, because these conjectures fail to provide 100% certainty, it is always best to confirm your suspicions by watching the candles that appear after the Marubozu. If the next few candles confirm your forecast (or if you spot another supportive candlestick pattern), feel free to move forward with confidence.

Marubozu Candlestick Pattern

Marubozu Candlestick Pattern

http://www.stock-trading-infocentre.com/marubozu.html

There looks to be some Python coding examples with Nictrades

https://github.com/mrjbq7/ta-lib/issues/74

With my working code, it seems that the return codes mean this:

The -100 denotes a bearish Tristar pattern where the middle candle body is above the other two. Conversely +100 denotes a bullish Tristar pattern where the middle body is below the adjacent ones.

https://stackoverflow.com/questions/36820189/what-are-the-numbers-such-as-100-100-200-200-and-etc-when-using-ta-lib-i

All of these trading ideas  are from Nictrades from https://www.facebook.com/NicTrades/

Refer to these links on my previous indicators of Fibonacci and moving average.

 

Thanks Bryan

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs