It’s often said – and this time, I’m sure there’s a lot in it – that one of the main factors in not showing a yield on your investment is that you’re in the wrong chart.

The newbies rush into the violent world of the 1-minute or 5-minute chart – with these you’re getting apparent signals coming at you constantly, and it does take a pro to sort out the gold from the trash (if it can be done at all).
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A nice simple one for the end of the week – or would be, except that definitions of the Marubozu can vary…

The majority view seems to be that marubozu = a candlestick with no upper or lower shadows.

Some will use the term to describe a candlestick with one shadow, usually trailing the trend direction, so that an open (bullish) candle will have a lower shadow and conversely a bearish has an upper shadow.
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Parabolic SAR was developed by J. Welles Wilder. (Yet another indicator, he was nothing if not busy with a pencil and paper in the ’70’s)

Parabolic SAR is designed to indicate exit points – both long and short – such that more unpredictable fluctuations at the beginning of the movement are smoothed, but accelerates upwards (long positions) or downwards (short positions) as the trend comes towards completion.
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Measured between 0 and 100, the ADX is a measure of the strength of a prevailing trend. Values below 20 indicate a weak trend, over 40 indicates a strong trend.

ADX doesn’t give you information on the direction of any particular trend, only the strength of that trend.

A move above 20 is a signal of a new trend starting, while the ADX dropping below 40 suggests that the current trend may be ending.
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