Marubozu Candlestick Entries with Opposite-Pattern Exits
Summary
This Forex price-action strategy detects bullish and bearish Marubozu candles. It defines a qualifying candle as having a body larger than its recent exponential average and upper and lower shadows no more than a small fraction of the body. A bullish candle is an up candle and prompts a long entry; a bearish candle is a down candle and prompts a short entry.
The script closes a long after two preceding down candles followed by an up candle, and closes a short after two preceding up candles followed by a down candle. It also plots labels and alert conditions for the patterns. The document provides code but no backtest period, trade statistics, or performance evidence. The rules describe one way to formalize a candlestick pattern, but do not establish predictive value; the excerpt also gives little detail about market, timeframe, or execution assumptions.
Key ideas
- The script classifies Marubozu candles by body size relative to an exponential average and by small shadows.
- A qualifying bullish candle triggers a long entry, while a qualifying bearish candle triggers a short entry.
- Positions close after two preceding candles in the opposite direction and a current candle in the position direction.
- The script includes pattern labels and alert conditions, but provides no backtest evidence.
- Its predictive value and sensitivity to market and timeframe are not evaluated.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.