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Presented by Steve Nison,CMTCEO and Founder : Candlecharts.com
Common Candle Mistakes A special presentation for the MTA
CANDLES GIVE YOU TWICE THE INFORMATION AS A BAR CHART
Who’s in control?
Who’s in control?
Common Mistake
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Long Upper Shadows
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Long Lower Shadows
Common Mistake
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Importance of Trend
NOT a bullish engulfing pattern
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This is interesting: I recently purchased a
technical analysis package from a “WELL
KNOWN” technical analysis
guru. …During a strong uptrend, he called a
large white real body after a small black real
body a bullish engulfing pattern. If I hadn’t
bought and studied your education , I
would never would have known that and
would have assumed that he was right. And
could have lost a lot of money!
Thanks again for your great work!
-Carl
Is it a valid Candle Signal?
Not a Bullish Engulfing Pattern!
Common Mistake
Taguri candlestick
A chance to buy at the bottom
A Taguri is a candle with a bottom shadow. It is almost the same as other candles with bottom shadows that we have talked about, but here the white body is small, and the bottom shadow is relatively long. If this occurs after a decline (or when prices are low) it is considered a strong candle, and hints of a bottom. This is to say that it’s a selling climax, where the bears sold their shares, there was an interruption in the selling, and the stock rebounded to the main body of the candle. So with no more selling coming, buying here will not lead to a loss in the intermediate or long term, and the price has likely formed a bottom.When looking at the charts, this type of taguri candle appears frequently near bottoms or after the market has gone flat after a bottom.You can say that the buyers in the market have become stronger than the sellers, or you can say that the bears have done all of their selling, and the market recovered with only a little buying. The market is headed to higher values because this is indicating a change in balance between buyers and sellers.So if you see this candle, if you survey other conditions and then you buy, you can’t go wrong.
Trend Overbought/OversoldImproving %s
Trade Management Psychology
behind the pattern
Candles in Context
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Is this doji telling us there is something
different about the market?
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Doji candles in context
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The Multiplier Effect
Where a Nison candle signal confirms another
indicator
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East + West = Higher Confidence
Hammer atSupport
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East + West
Falling window
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Volume
Higher volume on white candle
compared to black on this bullish
engulfing pattern magnifies the
likelihood of a reversal
© Steve Nison’s Candlecharts.com
www.candlecharts.com
“Box Range” targets
target
target
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Box Range targets
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Using Measured Moves
Common Mistake
Going in the direction of Breakout
Momentum Trading
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Use the highest high of
those two sessions (top
of upper shadow) as
resistance
www.activeinvestorblueprint.com
Doji as resistance
breakout
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Candlestick Charting
Techniques
Candlesticks +Western
Indicators
Candlesticks + Trade Management
Common Mistake
A candle signal – even if it confirms other indicators – is not enough of a reason for a trade. You must always consider risk/reward
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Which is a better
trading signal?
Bearish engulfing pattern
Shooting star
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Waiting for time to ripen
Classic bearish
engulfing pattern:
But what about
risk/reward aspect?
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Classic Hammer at Support but…
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Great signal but poor R/R
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Bull Separating Line
Why I went long:
1) Bullish engulfing at
support
2) Trend line breakout of price
Was this a good trade that just didn't work out or did I make a mistake in judgment that I can't see?
Thank you,Gary B
Nison Insider Access - Sample Question
Support
Bullish engulf
© Steve Nison’s Candlecharts.com
www.candlecharts.com
Resistance
Closed overResistance-Do you buy?
1) What bullish candle signal is this?2) Based on this signal would you Buy? Why or why not?
Candles in Context
Special Pricing and Bonuses END Sunday Dec. 4
Questions?
paul@candlecharts.comMonthly access automatically discounted- No special code needed
www.candlecharts.com/ncs
Extra Bonus- if you can choose the monthly plan, and then decide on lifetime within first month, you will get full credit from that month applied to the lifetime.
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