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Marubozu brothers

PostPosted: Wed Oct 20, 2010 10:41 pm
by ivanlim
Hi guys. I see the Marubozu bars quite often these days,but i have no idea why there is a strong sell immediately after a strong buying session. I know that it is market natuure,but why is there a big change in such a short time? Why does the market reverse even when the momentum is strong? Won't price stall first,especially immediately after a strong move, before a reversal occurs?

Re: Marubozu brothers

PostPosted: Tue Nov 16, 2010 8:07 pm
by Edward Revy
The price would normally stall, when another few pips are needed to reach major Support/Resistance the next day/hour (depending on a time frame being used).

If, however, a Marubozu bar on the close succeeded in reaching/or even shooting over the target S/R, then a quick reversal is rarely a surprise. Besides, on a shorter time frame, you may just see a small pausing before a reversal.

Re: Marubozu brothers

PostPosted: Sat Nov 20, 2010 7:17 am
by ivanlim
Ok. Thanks Edward