Momentum Candles (Marubozu)
A Momentum candle has a big body and very small (or no) wicks. It signifies pure conviction.
Marubozu
The strongest signal in technical analysis.
- Bullish Marubozu: Open = Low, Close = High. (All Green)
- Bearish Marubozu: Open = High, Close = Low. (All Red)
Trading Range Expansion
Options premiums love Range Expansion.
If you see a series of small candles (chop) followed by a sudden Large Range Candle, it's a sign that Smart
Money has entered.
Don't Fade the Trend
Beginners often try to short a big green candle thinking "it has gone up too much".
This is a mistake.
A Momentum candle usually leads to continuation, not reversal. Follow the momentum.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.