Investigating the behavior of the exchange rate of the EUR/USD currency pair after the occurrence of extreme emotions

The purpose of this research is to investigate the behavior of the exchange rate of the EUR/USD currency pair after the occurrence of extreme emotions using the ATR indicator and the Marubozu candlestick pattern.

For this purpose, the one-hour candlestick chart was used in the time frame of 2020-2022. The average movement of each hourly candle was calculated in the period of one day (24 hours). One-hour candles whose opening to closing price was 3 times their moving average were found, and the average conversion rate difference after 4, 12, and 24 hours was compared to the closing conversion rate of said candles.

It was observed that after creating a Marubozu candlestick pattern, which represents the influx of buyers or sellers, it is possible to enter into a trade in the direction of the candle to make a transaction and gain profit.