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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: DaringDon who wrote (213)	10/3/2000 5:41:00 PM
From: Teresa Lo	Read Replies (2) \| Respond to of 8925

"What is a "Black Marubozu"? In Candlestick Charting Explained, Greg Morris does a good job of describing it. amazon.com There are two types, the Closing Marubozu (CM) and the Opening Marubozu (OM). Both types are tall white or tall black candles. The CM "has no shadow extending from the close end of the body, whether the body is white or black. If the body is white, there is no upper shadow because the close is at the top of the body...if the body is black, there is no lower shadow because the close is at the bottom of the body. The Black CM is considered a weak line and the White CM is a strong line." The OM "has no shadow extending from the open price end of the body. If the body is white, there would be no lower shadow, making it a strong bullish line. The black OM, with no upper shadow, is a weak and therefore bearish line. The OM is not as strong as the CM." So basically, the black CM is a larger than normal range candle that closes at the absolute low. The white CM is a larger than normal range candle that closes at the absolute high of the day. As this is not a pattern that I use, I hope davealex will correct me if I am wrong in my analysis. This is an example of using Japanese Candlesticks with Western Methods, such as the moving average and chart patterns. The rationale for this trade in FTIB is that there should be support on a pullback to the 20-day EMA (and also, I pointed out that it was the topside of the triangle) and when it pulled back, they had a buy stop on break of the high of black OM, on the assumption that all the sellers were exhausted and that a new leg up was on it's way. ispeculator.com **Note that next to the black OM, the next day formed a white CM. Teresa