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.
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.
All readings on this track · 54 readings
- 1990Constructing three-session rally and reaction volume signals
- 1991Constructing candlestick real bodies and multi-session patterns
- 1991Treat a candlestick reversal as incomplete until %D confirms it
- 1991Filtering candlestick signals with stochastic percent-D
- 1991Constructing compressed candlestick summaries
- 1993Intraday candlestick confirmation with oscillators
- 1993Candlestick hypotheses from a 1993 reading list
- 1994License candlestick signals with oscillators and weekly vetoes
- 1995Real-body support, resistance, and close-through breakouts
- 1997Weekly reversal as a three-part hypothesis
- 1998Turning fear levels into testable rules with a psychological matrix
- 2000Evaluating three-bar reversal reliability
- 2000Prior-day candles, open confirmation, and same-session stops
- 2000Intraday candlestick volume confirmation for daytrading
- 2001Count the key reversal up before coding a mechanical exit
- 2001Rising and falling three continuation candle construction
- 2002Treat a moving average as a contested fence
- 2003Candlestick signals need support and a risk-reward screen
- 2003Constructing one-day reversal tops and bottoms
- 2003Chart sentiment as a regime filter for hourly stochastic entries
- 2004Confirming index reversals with candlesticks, stochastics and averages
- 2004The harami inner close as a reversal barometer
- 2004Constructing a true-range volume power-shift filter
- 2005Weighing reversal clusters against moving-average support
- 2005Candlestick exits confirmed by overbought stochastics
- 2005Confirming piercing patterns with stochastics and moving averages
- 2006Candlestick cluster exits confirmed by overbought stochastics
- 2007Three black crows become a trade hypothesis only after regime, trend and nearby levels
- 2008Asymmetrical RSI lookbacks for divergence and candle confirmation
- 2008A permission checklist for the end of a trend
- 2010Mechanical entries still need confirmation gates
- 2010Crude oil as a case study in candlestick session reading
- 2010Gold weekly candles and the thousand resistance breakout
- 2010A three-layer gold chart drill from waves to candle confirmation
- 2011Why entry scans fail without trend filters
- 2011Price-zone oscillator trend-regime rules
- 2011A candlestick checklist before commodity entries
- 2013Step candle construction at price turning points
- 2013Two-bar step-candle construction
- 2014Small-range bars as a timed volume-climax hypothesis
- 2014Constructing volume-scaled candlestick charts
- 2015Weekly range midpoints as support and resistance
- 2015Constructing weekly body-midpoint pattern codes
- 2015Evaluating encoded candlestick sequence hypotheses
- 2015Constructing a breakout relative-strength index from two-day range candles
- 2016A three-gate classroom on hourly sterling
- 2016Fibonacci retracement as a pre-commitment stop map
- 2017Nine-zone filter for decade-level breakouts
- 2017Constructing pin-bar and inside-bar setups
- 2017Two-bar soldier and crow rules become a system only after filters and exits
- 2017Confirm a one-white-soldier or one-black-crow before entry
- 2018Session control from marubozu and engulfing geometry
- 2019Volume, acceleration, and candle filters on a completed double bottom
- 2019Sector-filtered candlestick scans and predrawn stops