WEBVTT 0 00:10.120 --> 00:17.790 Marubozu and belt hold lines. I'm pretty sure you were expecting two different patterns. 1 00:18.040 --> 00:19.360 Sorry to disappoint you, 2 00:19.390 --> 00:21.350 they are the same pattern. 3 00:21.790 --> 00:24.740 Traders call the single candle marubozu, 4 00:24.850 --> 00:31.550 but when the candle appears at the end of the trend, they call the reversal pattern belt-hold line. 5 00:31.930 --> 00:37.660 Since we don't really mind about the name of the pattern, we will only call this candle Marubozu, 6 00:37.960 --> 00:42.140 we will not use the other term belt-hold lines. 7 00:42.250 --> 00:43.910 What is a marubozu? 8 00:44.420 --> 00:49.330 A marubozu is a candle with a long real body and no shadows. 9 00:49.330 --> 00:54.050 If the body of the candle is green, we have a bullish marubozu; 10 00:54.340 --> 01:01.120 if the real body is red we have a bearish marubozu. Even for this pattern, 11 01:01.150 --> 01:07.360 I invite you to catch the logic behind it, so there's no need to be super rigid about the rules. 12 01:07.360 --> 01:14.350 If you see a very small upper shadow or a very small lower shadow, you can still consider the candle 13 01:14.350 --> 01:15.810 as a marubozu. 14 01:16.420 --> 01:23.330 Let's consider a bullish marubozu for example. From the very beginning to the end of the session, 15 01:23.350 --> 01:25.660 buyers push the price higher. 16 01:25.840 --> 01:31.540 So this candle is the most powerful sign of buyers on the market. 17 01:31.540 --> 01:38.170 I want to give you an example of daily life experience because I like to show how Forex behavior is 18 01:38.200 --> 01:42.520 usually similar to other situations of normal life. 19 01:42.520 --> 01:49.100 Last Christmas I wanted to buy a board game so I went on Amazon and I looked for Speakout. 20 01:49.330 --> 01:54.390 You probably know the game because it's become ridiculously popular last year. 21 01:54.790 --> 02:01.960 Anyway the game was so popular that no seller in UK had the game anymore and it was still November, 22 02:02.110 --> 02:05.160 more than one month before Christmas. 23 02:05.410 --> 02:12.700 Some days Amazon was receiving some stock like 200 pieces but it was almost impossible to buy the game 24 02:12.700 --> 02:21.610 if you were not at the computer 24 hours per day, because those two hundred pieces were gone in 15 minutes. 25 02:21.610 --> 02:29.020 Everyone wanted to make sure to have the game for Christmas. In Forex terms we could say that buyers 26 02:29.020 --> 02:31.640 were increasing the demand. 27 02:31.660 --> 02:38.800 You can see here that the original price for the game is 21.99 pounds in UK. By 28 02:38.800 --> 02:40.570 the end of November, 29 02:40.630 --> 02:48.250 Amazon was selling the game for £50 and the price was increasing every time Amazon received new stock. 30 02:48.250 --> 02:55.200 Now consider those 15 minutes that you could use to buy the game on Amazon as a forex candlestick. 31 02:55.450 --> 03:02.680 The action of the buyers regarding that game can be compared to a Marubozu. Buyers start to buy 32 03:02.680 --> 03:08.260 from the first seconds that the board game is available on Amazon and they only stop when the game is 33 03:08.260 --> 03:11.080 sold out. In Forex market, 34 03:11.080 --> 03:17.180 we see that buyers start to buy the couple from the beginning of the session to the end. 35 03:17.200 --> 03:24.330 Now the question is: if the buyers have been so active during the session and were still active 36 03:24.330 --> 03:31.360 by the end of the session, is it likely that they want to buy some more when the next session opens? 37 03:31.720 --> 03:38.790 Yes! That's why traders expect to see another bullish candle after a bullish marubozu. 38 03:38.950 --> 03:42.440 So far, we have only seen reversal signals, 39 03:42.580 --> 03:49.780 marubozu can be used as a reversal pattern and as a continuation one as well. If it appears going 40 03:49.780 --> 03:53.760 against the trend, like the one highlighted in yellow in this chart, 41 03:54.040 --> 04:02.020 it forms a reversal signal. Most of times this signal will be a bullish or bearish engulfing, a double 42 04:02.020 --> 04:05.430 candlestick pattern that we will study later on. 43 04:05.980 --> 04:12.580 If the marubozu appears confirming the trend, like the two candles in this chart, it will form 44 04:12.580 --> 04:14.040 a continuation pattern.