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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There’s little doubt that there’s another round of coordinated central bank rate cuts in the offing. It will have been discussed at the summit of G7 finance ministers at the weekend, together with other solutions to the overall market crisis. The usual question at this point being is it really enough to make any difference at all?

Last week, AUD dropped 20% against the yen to hit ¥64.50 – the largest single week fall since it floated back in 1983 – before rallying to ¥64.96. NZD got rid of 13.7% over the week to close at ¥60.01.
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