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
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
Marubozu line with candlesticks
(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.
There looks to be some Python coding examples with Nictrades
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.
All of these trading ideas are from Nictrades from https://www.facebook.com/NicTrades/
Here are the details of my Python infrastructure trading block course here
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!