The Marabuzo line in action in USDCHF
24th June 2015
The phrase ‘Marabuzo line’ is one that you’ll see a lot on these pages. This is because that consistently show their use in a real trading environment.
The example below is currently impacting on day to day trading in USDCHF.
Remember to draw a Marabuzo line we need to determine a Marabuzo candle and in this particular case the larger than the norm ‘real body’ can easily be marked for Jun 8th where prices fell 123-pips, open to close. The resulting Marabuzo line has impacted on price action on 8 of the 12 subsequent days.
The price has been exceeded but it is the close that is the important element and that has always been below that point.
Tuesday’s strong move up is testing that resolve but, at the time of writing, has found selling interest. Other technical signals are positive but to be long we’re waiting for the daily close above a point that should then act as an equally strong support.
