Marubozu Forex Price action

The Marubozu Forex Price action indicator identifies Marubozu candlestick patterns to signal potential trend continuations or reversals in the Forex market.

Usage

The tool is primarily used to detect high-momentum candles that lack significant shadows, indicating strong buying or selling pressure.

• Long Entries: A Bullish (White) Marubozu occurs when the body is long and has little to no upper or lower shadows, suggesting a strong upward move.
• Short Entries: A Bearish (Black) Marubozu occurs when the body is long and has little to no shadows, suggesting a strong downward move.
• Exits: The strategy includes specific price action exit rules. For long positions, the strategy closes when the current candle is bullish after two consecutive bearish candles. For short positions, it closes when the current candle is bearish after two consecutive bullish candles.

Details

A Marubozu candle is a significant price action signal in technical analysis. In Japanese, "Marubozu" means "bald" or "close-cropped," referring to the lack of wicks or shadows. This indicator calculates a "long body" by comparing the current candle's body size against an EMA of recent bodies. It then checks if the wicks are within a user-defined percentage of the total body size to qualify the candle as a Marubozu.

Settings

• EMA Depth for Body Avg: Determines the lookback period used to calculate the average body size, which defines what constitutes a "long" candle.
• Size of Shadows (%): Sets the threshold for general shadow detection relative to the candle body.
• Shadow Equals (%): Defines the tolerance for considering two shadows equal.
• Doji Body (%): The maximum body size relative to the range to qualify a candle as a Doji.
• Shadow Dominates Factor: Multiplier used to determine if shadows are significantly larger than the body.
• Marubozu White/Black Bullish/Bearish Candles: Sets the lookback or count requirements for identifying these patterns.
• Marubozu Shadow Percent White/Bearish: Specific threshold for wicks on Marubozu candles; lower values require "balder" candles.

FAQ

How do I use the Marubozu Forex Price action indicator?

The indicator automatically plots "MW" (Marubozu White) for bullish signals and "MB" (Marubozu Black) for bearish signals. You can use these as entry points in a trend-following strategy.

What timeframes work best for this tool?

While designed for Forex price action, it can be applied to any timeframe. Higher timeframes (1H, 4H, Daily) generally provide more reliable Marubozu signals as they filter out market noise.

How can I get access to Marubozu Forex Price action?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.