WithSteve Nison, CMT President: Candlecharts.com 1
Benefits of Nison Candlesticks Any market Any time frame Simple to apply Safety first trading Early reversals for razor sharp entries and exits Profit Leaker Profit Leaker 2
ANATOMY OF THE CANDLESTICK LINE high close Shadow Real Body open open low close Real Bodies / Shadows 3
Reading the Market s Message Using the databelow, draw the candlesticklines and then analyzewhat each candlestickline says about who s in controlof the market session open high low close 1 22 26 21 26 2 26 27 26 27 3 23 27 22 22 4 25 28 22 25 5 27 27 24 24 28 27 26 25 24 23 22 21 1 2 3 4 5 Reading the Market s Message Using the databelow, draw the candlesticklines and then analyzewhat each candlestickline says about who s in controlof the market session open high low close 1 22 26 21 26 2 26 27 26 27 3 23 27 22 22 4 25 28 22 25 5 27 27 24 24 28 27 26 25 24 23 22 21 1 2 3 4 5 4
Nison candlesticks help you get into the market before the big moves Evolution of Charts: The 1 st Dimension Line chart Evolution of Charts: The 2 ND Dimension Bar chart 5
Evolution of Charts: The 3 rd Dimension candlestick chart Black or white candle with long upper shadow compared to real body. Market Implication: Potential top reversal For a more detailsand nuances on successfullyusing this signalrefer to Volume 1-Module 1 and Volume 3-Module 2 of the Nison Educational Series Market Implication: Shooting Star signals trouble overhead 6
Nison candlesticks provide you with Safety First Trading Steve Nison s Candlecharts.com Where open and close are the same (or nearly the same) Market Implication: Market at a point of indecision For a more detailsand nuances on successfullyusing this signalrefer to Volume 1-Module 1 and Volume 3-Module3 of the Nison Educational Series. 7
Doji Doji The red arrows show the bulls have complete control. The doji alters the trend. Candlestick for Early Reversals doji 25 day moving average Close under m.a. support area The cost of not using candles Holding the highs very well so looks fine Chart courtesy of Genesis FT 8
Now what does this candle chart say? Does the market still look fine? Chart courtesy of Genesis FT Saved by the light of the candles! Warren Buffet s Rules of Money Management Rule 1 Not to lose money Rule 2 Don t forget rule 1 9
Saved by the light of the candles! Those poor traders/investors who got fooled into buying here. Profit Leaker 10
Shadows Remember: location and size of the shadow should be considered when analyzing the market psychology. Implication: Bearish long upper shadow offsets rallying strength. Bullish long lower shadows hints bears losing force. Long lower (bullish) shadows Although this market is descending, the long lower shadows offsets some of the negative outlook Black or white candle with long lower shadow compared to real body. For a completeexplanationof this pattern and how to use it, go to: Volume 1-Disc 2 and Volume 3-Disc 2 of the Nison Educational Series 11
Education = Confidence = $uccess Doji as exit at $169.30 Hammer as buy at $166.50 Retest of hammer s shadow Chart Challenge Say you bought at the hammer @ $25. What would you do here and why? 12
Profit Leaker To know where you stand is as important as candlestick pattern recognition This doji is showing a shift in psychology since it comes during a rally Is this doji telling us there is something different about the market? 13
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Doji in a Box Range Combinations of bullish and bearish candle lines indicate the direction of the market and investors psychological conflicts at important turning points. White real body that wraps around prior session black real body or doji. For a more details and nuances on successfully using this signal refer to: Volume 1-Module 3 and Volume 3-Module 3 of the Nison Educational Series 14
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Dual candlestick signals Black real body wraps around prior session white real body or doji. For a complete explanation of this pattern and how to use it, go to: Volume 1- Module 3 and Volume 1-Module 4 of the Nison Educational Series Chart Challenge During this time, the market is ascending. However, what are reasons for caution? 15
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Nison Power Concept Candlestick Charting Techniques Candlesticks + Western Indicators Candlesticks + Trade Management East + West Confirmation Where a candle signal confirms a Western technical signal 16
Steve Nison s Quick Start Guide to Correctly Using Candlesticks EAST & WEST CONFIRMATION Nison candles with: Trendlines Bollinger Bands RSI Stochastics MACD Price Patterns Retracements Moving Averages Etc Think this FX market had trouble near 91.90? 17
Steve Nison s Quick Start Guide to Correctly Using Candlesticks East + West = Higher Confidence Hammer at Support Candlestick Charting Techniques Candlesticks + Western Indicators Candlesticks + Trade Management What is one of the best ways to make money? Those poor traders who got fooled into buying here. 18
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Speed is the Essence of Successful Trading Resistance zone 19
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Risk/Reward Buy XYZ at 100 Support at 96 Price target (i.e resistance) at 108 Risking 4 looking to make 8 gives a 1:2 risk/reward How trade management helps save money Bullish Engulf Pattern but what about profit potential? How trade management helps save money 20
Steve Nison s Quick Start Guide to Correctly Using Candlesticks Relie on us for correct candlestick training Benefits of candles Anatomy of the candlestick line Reading the market s message Importance of shadows The shooting star The hammer The bullish engulfing pattern The doji How candlesticks provide safety first trading The importance of candlesticks in context The power of East + West Nison Power Concepts Trade management Chart challenges Candlestick Profit Leakers Volumes 3/4: Advanced candles with advanced western indicators & advanced trade management Expert Level Volume 2: Candles with western indicators & trade management Senior Apprentice Level Volume 1: Candle Charting Essentials and Beyond Apprentice Level Quick Start Video Novice Level Your next step 21
Steve Nison s Quick Start Guide to Correctly Using Candlesticks 22