Marubozu Indicator MT4 | MT5

The Marubozu Indicator detects Marubozu patterns, which are significant price action candles with no (very small) wicks. These candlesticks are divided into two categories:

• Bullish Marubozu: This candle forms when the opening price is close to the low, and the closing price is near the high, indicating buying pressure.
• Bearish Marubozu: This candle forms when the opening price is near the high, and the closing price is close to the low, signaling selling pressure. 

Moreover, this indicator visually highlights these candles on the chart with green symbols indicating bullish marubozu and red for bearish ones. Traders often use this indicator to confirm trend continuation or to anticipate potential reversals.

• Trend confirmation: 

- When a bullish Marubozu appears during an uptrend, it signals continuation and a long reentry into the market.

- When a bearish Marubozu appears during a downtrend, it confirms the trend continuation and signals a short opportunity.

• Potential Reversals:

- If a bullish Marubozu forms at a support level during a bearish movement, it may indicate a bullish reversal.

- If a bearish marubozu forms at a resistance level during a bullish momentum, it may signal a bearish reversal.

To avoid false signals, it is highly recommended that traders should combine this indicator with the other indicators before entering the market.

1/ In the first trading example, using the Marubozu indicator on MetaTrader 4, during a downtrend, the indicator detects two bearish Marubozu candles that confirm the continuation of the downward trend. Traders should hold their short trades on the GBPUSD pair or even reenter selling after a confirmation with the other technical analysis indicators to make an accurate entry.

Conversely, if in a real-time trading situation, and the indicator plots a bullish Marubozu, it confirms the continuation of the trend and signals a strong long opportunity.

2/ In the second trading example, using the Marubozu indicator on MetaTrader 5, at the bottom of a downtrend, the indicator plots a bullish Marubozu, which suggests a potential bullish trend, and traders should exit their short trades and enter long for the EURJPY pair.

Conversely, if the indicator detects a bearish Maryubozu at the end of an upward trend, it may signal a bearish reversal and a short opportunity.