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2018issue C1312-15

Session control from marubozu and engulfing geometry

Treat a finished bar as a construction problem first. Rebuild who owned the session from the open, high, low, and close, then use only a completed marubozu or engulfing pair as a falsifiable continuation hypothesis on hourly or four-hour charts.

  • Construction depends on body-versus-shadow geometry and on whether buyers or sellers controlled the full session, not on display color.
  • A bullish marubozu opens at the session low and closes at the session high; a bearish marubozu opens at the session high and closes at the session low.
  • A bullish engulfing pair is a down candle immediately followed by a larger up candle that covers it; a bearish engulfing pair reverses that order.
  • The event is treated as complete only after the qualifying marubozu or engulfing pair has closed, and the setup is specified on hourly or four-hour charts.
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Rebuild who owned the session

A finished bar is treated first as a construction problem. From the open, high, low, and close, the reader rebuilds whether buyers or sellers controlled the session.

Display color is an illustration choice. Construction depends on body-versus-shadow geometry and on whether buyers or sellers controlled the full session.

Marubozu geometry

A marubozu is a single candle whose real body has no meaningful upper or lower shadow, so one extreme of the session is the open and the opposite extreme is the close.

A bullish marubozu is built as a long up body with no shadows, so the open matches the low and the close matches the high. That geometry is read as buyers owning the entire bar.

A bearish marubozu is built as a long down body with no shadows, so the open matches the high and the close matches the low. That geometry is read as sellers owning the entire bar.

Engulfing pairs

A bullish engulfing formation is a two-candle structure: a down candle immediately followed by a larger up candle that covers it.

A bearish engulfing formation is a two-candle structure: an up candle immediately followed by a larger down candle that covers it.

Impulse context and the completed close

Large directional candles used to flag impulse moves are described as uncommon in balanced, low-volatility conditions and more typical when the tape is already trending or volatile.

A breakout from balance is described as coinciding with a marubozu or an engulfing pair. The same constructions are also used to mark continuation after a pullback. In this workflow that bar or pair is the impulse-candle: a large directional bar or pair used to mark a break away from balance or a resumption after a pullback.

The setup treats the event as complete only after the qualifying marubozu or engulfing pair has closed, and it is specified on hourly or four-hour charts. The completed-close rule means the pattern is not treated as formed until the qualifying candle or second engulfing candle has finished.

Level-flip after a strong bar

A long, strong up candle is read as a resistance break that may later act as support. A long, strong down candle is read as a support break that may later act as resistance. That reading is the level-flip in this workflow.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
52 of 54 in the Candlestick patterns track
201922-25 pp.Next on Candlestick patternsVolume, acceleration, and candle filters on a completed double bottomA double bottom is complete only on the breakout that first clears the mid-pattern peak. Volume-price, acceleration, and breakout-candle rules were then stacked on that finished structure as independent combination tests.
All readings on this track · 54 readings
  1. 1990Constructing three-session rally and reaction volume signals
  2. 1991Constructing candlestick real bodies and multi-session patterns
  3. 1991Treat a candlestick reversal as incomplete until %D confirms it
  4. 1991Filtering candlestick signals with stochastic percent-D
  5. 1991Constructing compressed candlestick summaries
  6. 1993Intraday candlestick confirmation with oscillators
  7. 1993Candlestick hypotheses from a 1993 reading list
  8. 1994License candlestick signals with oscillators and weekly vetoes
  9. 1995Real-body support, resistance, and close-through breakouts
  10. 1997Weekly reversal as a three-part hypothesis
  11. 1998Turning fear levels into testable rules with a psychological matrix
  12. 2000Evaluating three-bar reversal reliability
  13. 2000Prior-day candles, open confirmation, and same-session stops
  14. 2000Intraday candlestick volume confirmation for daytrading
  15. 2001Count the key reversal up before coding a mechanical exit
  16. 2001Rising and falling three continuation candle construction
  17. 2002Treat a moving average as a contested fence
  18. 2003Candlestick signals need support and a risk-reward screen
  19. 2003Constructing one-day reversal tops and bottoms
  20. 2003Chart sentiment as a regime filter for hourly stochastic entries
  21. 2004Confirming index reversals with candlesticks, stochastics and averages
  22. 2004The harami inner close as a reversal barometer
  23. 2004Constructing a true-range volume power-shift filter
  24. 2005Weighing reversal clusters against moving-average support
  25. 2005Candlestick exits confirmed by overbought stochastics
  26. 2005Confirming piercing patterns with stochastics and moving averages
  27. 2006Candlestick cluster exits confirmed by overbought stochastics
  28. 2007Three black crows become a trade hypothesis only after regime, trend and nearby levels
  29. 2008Asymmetrical RSI lookbacks for divergence and candle confirmation
  30. 2008A permission checklist for the end of a trend
  31. 2010Mechanical entries still need confirmation gates
  32. 2010Crude oil as a case study in candlestick session reading
  33. 2010Gold weekly candles and the thousand resistance breakout
  34. 2010A three-layer gold chart drill from waves to candle confirmation
  35. 2011Why entry scans fail without trend filters
  36. 2011Price-zone oscillator trend-regime rules
  37. 2011A candlestick checklist before commodity entries
  38. 2013Step candle construction at price turning points
  39. 2013Two-bar step-candle construction
  40. 2014Small-range bars as a timed volume-climax hypothesis
  41. 2014Constructing volume-scaled candlestick charts
  42. 2015Weekly range midpoints as support and resistance
  43. 2015Constructing weekly body-midpoint pattern codes
  44. 2015Evaluating encoded candlestick sequence hypotheses
  45. 2015Constructing a breakout relative-strength index from two-day range candles
  46. 2016A three-gate classroom on hourly sterling
  47. 2016Fibonacci retracement as a pre-commitment stop map
  48. 2017Nine-zone filter for decade-level breakouts
  49. 2017Constructing pin-bar and inside-bar setups
  50. 2017Two-bar soldier and crow rules become a system only after filters and exits
  51. 2017Confirm a one-white-soldier or one-black-crow before entry
  52. 2018Session control from marubozu and engulfing geometry
  53. 2019Volume, acceleration, and candle filters on a completed double bottom
  54. 2019Sector-filtered candlestick scans and predrawn stops
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