In one of my previous post concerning investing, I made an introduction to Japanese Candlestick Charts. If you don’t know what values and how are represented on candlesticks, I strongly advice you to read that post.

If you are already familiarized with candlesticks, we can go on and today I will start a series of posts presenting candlesticks formations.

Marubozu is one of the most important Japanese candlesticks. This is single candlestick formation and we can distinct two types of Marubozu: white and black.

In general, Marubozu always has long body and doesn’t have shadows or shadows are very small. It means that white marubozu’s highest price (almost) equals closing price and lowest price (almost) equals opening price. Black marubozu’s opening price (almost) equals highest price and closing price (almost) equals closing price.

Color and length of the body tell us about the strength and relation between bulls and bears. If we get white marubozu, the bulls are in control; if black marubozu, then bears.

How can we use marubozu?

Marubozu as a signal of trend shift.

White marubozu on low price level very often is a signal to change the trend to upward direction. In such case white marubozu tells us that there is a price minimum and there is no resistance on the market to grow.

Black marubozu works analogically. On high price level, it signals change to downtrend. Bears start to take control and there is no resistance to go down.

S&P500. White marubozu starts uptrend.

Marubozu as a confirmation of support/resistance.

When white marubozu reflects from a support or a black marubozu reflects from a resistance, this is strong confirmation of that price level.

Microsoft. Two white marubozu’s confirm strong resistance - lower limit of upward channel.

Marubozu breaks support/resistance.

When white marubozu breaks resistance or black marubozu breaks support it is strong signal that the price would follow the direction of marubozu.

Apple. Black marubozu breaks support - 45 SMA

Marubozu as a support/resistance.

Middle of the marubozu’s body is very important price level. It is either support (white marubozu) or resistance (black marubozu).

Yahoo. Middle of black marubozu gives strong resistance.

Of course, keep in mind that examples described above don’t give you 100% guarantee of profit. They are very probable scenarios but you should always support yourself with other techniques of technical analysis. Even then, you don’t have 100% that you make a good pick.
Remember to use different methods and diversification. This way you can effectively minimize risk level and be a successful investor.

This post is written by my brother, Dominik Wrzesniewski.

1. Idea.

In order to achieve success, we need an idea. What and how we want to do. Whether it will be an on-line shop or small gym for businessmen – idea is an entry point.

It is pretty obvious, we need an idea what dish can surprise our girlfriend.

2. Orientation and planning.

Our idea is getting brighter and colorful, it engages our imagination. It’s time to act. Let’s start with recognizing; what is necessary for execution of our goal. When we want to start some kind of business, there are a lot of things to check: from law issues, to financial and technical. We have to know, what we need to start.

In the kitchen, we have to know, what equipment do we need and what to buy in order to prepare our dish.

3. Acquire and prepare resources.

When we have a vision of our goal and a consistent plan, we need to get necessary tools and resources. We have to hire employees, find an office, buy equipment and prepare a website.

We can’t avoid grocery shop. We select products, sometimes we also need a cooking book and in the end we land in the kitchen, ready for real action (I know kitchen is not familiar place for many of you, guys, for me as well).

4. Process of production.

Finally, the great day comes. We engage our resources and start business. This is a moment when our plans find a way to become reality. This way is through our hard work.

Exactly like in the kitchen. When you are at least slightly accused to this exotic place… We have all products and tools, let’s play.

5. Quality, quality, quality.

We dream about success. So we want to provide best quality products and services. We put a lot of energy and attention. We care for each step of this process: buying quality materials, execution and equisite finish.

In order to make a good impression, we can’t use expired pasta or cheap wine… …what wine? Ok, ok… beer will wait till football match.

6. Monitoring the execution.

Quality is a deciding factor of our success. Therefore, it is good idea to constantly monitor our business. Staff trainings, random checking quality of different services, resources and inventory monitoring, all these actions will increase our chances for success.

In our kitchen, I suggest constant monitoring using our sense of taste. This way we will avoid surprises. I meant tasting dish not the beer.

7. Marketing.

Even the best product needs a good package and must be placed in relevant place, in relevant time. Don’t forget to inform our costumers what we prepared for them.

Let’s assume we are lucky that our dish tastes and looks quite similar to our recipe from cooking book (if you’ve already drunk beer which you supposed to left for match, you can experience some difficulties during comparison). There is a chance that our dish is eatable. It would be very stupid not to serve it in extraordinary way. New set of plates, clean tablecloth and candlesticks are all very important to make a good impression. History of marketing knows cases of poor products saved by good marketing strategies. Did anybody mention something about windows?

8. Getting things done.

Our offer is ready. We need to coordinate all actions before zero hour. Communication works, product is provided, and staff is well-trained.

Music in the background, cell phoned switched off, and wine is opened. Is cutlery polished?


photo credit: koishikawagirl

9. Taste of satisfaction.

We all love the taste of success. Feel this nice warm and refreshing excitement after doing great job. It is time for prize. Enjoy this time with your co-workers. Now you know it was worth to work so hard.

The prize after a romantic dinner with your girlfriend… well, this blog doesn’t require parental advisory, so I will skip the details.

10. Planning the future.

Show must go on. We achieved success, but this is not the end. We love the taste of success, so it’s time to look for another challenge. If not you, someone else will offer a new way to change a world. Don’t give a shot your competitors.

So, what is your idea for tomorrow?

Welcome to the second edition of Sunday Roundup. There is a great, sunny weather outside, so I don’t want to keep you for too long in front of your screen. Therefore, I made today links list even shorter that in previous roundup.

If you never go through all links in such roundups and you always check only for the most interesting, most important and most valuable content – this one is for you. Read about The Secret of Life.

Trent presents Twelve Effective Tactics from The Deptor’s Toolkit.

Do you know what the Most Valuable Parts to success are? This post will help you to achieve your goals.

Still looking for ideas on money making? Go to The A-Z list of Money Making Ideas. This is a great series of posts presented by Alan from TheRatingBlog.com.

Finally, if you are a blogger and you often run out of ideas what to blog about, check Greg’s Ultimate Blog Post Inspiration List.

I have a lot of post ideas. Unfortunately, I have not enough time for it. Maybe I should ask Greg to prepare Ultimate Time Stretching Spells List? Hmm… I think I better focus on developing my time management.

I trade on GPW (Gielda Papierow Wartosciowych w Warszawie – eng. Warsaw Stock Exchange) via my broker account in my bank. All my accounts (personal, saving, broker, fund supermarket) are fully integrated and easy to manage.

On my bank’s website, I found an interesting list of 10 most important and most quoted rules concerning investing. There is an English part of this website, but unfortunately page containing these rules is available only in Polish.

Below I listed them. These rules are very simple, but a lot of beginner investors don’t obey them.

1. Those who think they are smarter than the market, they feed it.
2. Never put all your money into one stock company, fund or even one type of funds.
3. Broaden your knowledge about the market.
4. Have your own opinion. Treat analysts’ opinions only as a support.
5. Be consistent in your actions.
6. Always establish how much you can lose.
7. Don’t try to make quick money. Investing is for patient people.
8. When media says there is a boom on the market, start selling your stocks.
9. Don’t try to catch peaks and troughs.
10. Never invest against trend.