Marabuzo line

[noshoulders]

Hi all,

A friend mentions a Marabuzo line this morning, i thought he was making it up.

Can anyone shed any light as to what this is? - i've tried googling and searching this forum, and the index's/glossaries from several books.

Thanks

Shoulders

 

[chump]

Just search on candlesticks and you'll find it.

 

[noshoulders]

just found this:
http://candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp

still nothing about marabuzo's though

 

[TheBramble]

It's not just candlestick talk. It is any (relatively) long bar where the low and close are very near each other (or at exactly the same level of course!). Relative being to recent price action.

 

[Jack o'Clubs]

... in candlestick talk that would be a shaven bottom, the marabuzo is when both head and bottom are shaven, ie no (or very small) shadows, indicating that during the period the market confidence in the move (up or down) is very strong - ie it's just kicked off and moved in one direction with no uncertainty.

 

[Jack o'Clubs]

By the way - if you want to see one, look at 15 minute cable now!

 

[TheBramble]

JoC - I stand corrected. But it (the marabuzo candle/bar) needs to be relatively large in relation to recent price action to qualify as being a marabuzo.

{desperately trying to recover from massive loss of face and having to consider the only honourable course of action for being wrong...}

 

[Jack o'Clubs]

LOL. Quite right Bramble. Not sure that the cable signal qualifies in that case...

I'm only claiming a superior tone because I just finished reading Nilson's candlestick book last night...!

 

[noshoulders]

got it!

http://www.chartfilter.com/candlesticks/bullishcandlesticks1.htm

 

[noshoulders]

ok thanks for all your help guys, much appreciated

 

[barjon]

it's marubozo - that's why you couldn't find it - but the definition is just as jacko says

edit: oops too late - see you've found it :cheesy:

 

[TheBramble]

Look! I've already been stuffed by that JoC know all! And now you!!!

OK. OK. Seppuku is the only way out for me now, I realise that.

But before I go, you must realise that any transliteration is going to have to allow for some slack in the vowels. And after I've finished wielding my short sword there'll certainly be some slack in my bowels.

As protocol dictates I must write my death poem which I shall construct in archaic 17-syllable Haiku form:-

The Trader and Ten Thousand Trades
The Moon Rises, The Sun Sets
How Sad

Barjon, would you do me the honour of being my kaishaku (or kaishakunin)?

 

[barjon]

The kaishaku enters with a naked blade. He removes his right arm from his kimono to give him more freedom of movement. He passes the blade in front of the victim's eyes, then ladles water down each side of the blade. This performs two functions. Firstly, according to Shinto beliefs it ritually purifies the blade, and secondly, the water provides some lubrication which will make the cut cleaner.

Such trust brambs - unfortunately, if my entry blade is anything to go by lately, my naked blade is a trifle dull so i hope you can stand a bit of hacking

good trading

jon

 

[Pat494]

Would you be able to roughly rate it's predictive qualities ?
i.e. 75%
A bearish harami got this present slide in the S&P spot on !

Coming to think of it, wouldn't it be a great trading tool if the computer system could rate the candlestick system ( in this case ) for the desired data eg S&P500 on a % basis. Some systems work better on some data than others. I can't program it myself but I think there is a way forward here for anyone that can ?? ( Please send me a copy ?? )

Go easy with the cutlery Bramble, things may improve !

 

[barjon]

Would you be able to roughly rate it's predictive qualities ?
i.e. 75%
A bearish harami got this present slide in the S&P spot on !

Coming to think of it, wouldn't it be a great trading tool if the computer system could rate the candlestick system ( in this case ) for the desired data eg S&P500 on a % basis. Some systems work better on some data than others. I can't program it myself but I think there is a way forward here for anyone that can ?? ( Please send me a copy ?? )

Go easy with the cutlery Bramble, things may improve !

pat

mmm, dunno - a high volume marubozo is often good for a play in the other direction the next day (here's one).

so far as other candlestick reversals - they are often short lived but sometimes they last longer (and here's another)

good trading

jon


edit: sorry, poor chart - the dark blue marubozo on the first chart is an up candle - may show up alright if you can expand, but I seem to have trouble doing that

 

[TheBramble]

Glad to see my haiku so moved you to incorporate the setting Moon in your charts. Pure poetry.

And the kaishaku is normally a trusted friend. So they would not be "passing the blade in front of the victim's eyes", (my emphasis) but ensuring the honour accorded him in his duties had been well placed, by showing the person about to head off (sorry, I have no control over this) that he would be making as quick and painless a finale to the event as possible.

Strangely, before it was outlawed, it was never part of Japanese Samurai culture until after the move away from Shinto toward Buddhism. Shinto temples were never used for the act. Strange old lot really.

A good long Marabuzo (Marubozo) in a down trend terminating at a previously tried and tested area of Support with diminishing volume is always a good place to consider selling Puts. You never can tell if it's going to bounce up straightaway again or just meander sideways for a bit. But the least likely move is an immediate continuation of the downward move.

So the PUT sell takes care of by far the greatest range of probabilities in that situation.

This will work far more efficiently in a longer than intraday timeframe BTW. Options volatility being what it is.