Embed Size (px)
Citation preview
Candlestick Charting Basics:Spotting the Early Reversals Signals
555 Route 18 South PMB 2000 East Brunswick, NJ 08816 USA Telephone: 732-254-8660 Facsimile: 732-390-6625
Web site: www.candlecharts.com E–mail: [email protected]
By
Steve Nison, CMTPresident, Candlecharts.com Inc.
“Japan's Candlesticks Light Traders' Path”--- Wall Street Journal
“Whether you day trade or hold positions candlesticks are a must” --- Investors Library
“Candlesticks: A New Light in Technical Analysis” --- Barron’s
Media Comments
openopen closeclose
openopen
Real Body
high
low
Shadow
Real Bodies / Shadows Doji
Constructing the Candle LineConstructing the Candle Line
closeclose
Drawing Candle LinesDrawing Candle Lines
21
22
23
24
25
26
27
28session open high low close
1 23 26 21 25
2 26 28 23 27
3 23 27 22 22
4 25 28 22 25
5 27 27 25 25
1 2 3 4 5
21
22
23
24
25
26
27
28session open high low close
1 23 26 21 25
2 26 28 23 27
3 23 27 22 22
4 25 28 22 25
5 27 27 25 25
1 2 3 4 5
Drawing Candle LinesDrawing Candle Lines
Small Real Bodies(spinning tops)
Candle(stick) Chart - spinning tops
Small Real BodiesSmall Real Bodies
DojiDoji
Doji after tall white candleDoji after tall white candle
Doji after tall whiteDoji after tall white
Doji as ResistanceDoji as Resistance
Gravestone DojiGravestone Doji
ShadowsShadows
Long Upper (Bearish ) Long Upper (Bearish ) ShadowsShadows
Long Upper ShadowsLong Upper Shadows
Long Lower (Bullish) ShadowsLong Lower (Bullish) Shadows
HammerHammerHammer
black or white
18
HammersHammers
Shooting StarShootingShooting StarStar
black or whiteblack or white
Shooting StarShooting Star
?
High Wave CandlesHigh Wave Candles
High Wave CandleHigh Wave Candlenew high close, but??
High Wave CandleHigh Wave Candle
High Wave CandleHigh Wave Candle
Who’s in Charge?
Who’s in Charge Now?
Convergence of Candles Define Convergence of Candles Define SupportSupport
12 3
4
Engulfing PatternsEngulfing Patterns
BearishBearishEngulfing Engulfing PatternPattern
BullishBullishEngulfingEngulfingPatternPattern
28
Engulfing PatternsEngulfing PatternsBearish
Bullish
How many black candles did this wrap around?
Bullish Engulfing PatternBullish Engulfing Pattern
Bearish Engulfing PatternBearish Engulfing Pattern
The Trading TriadThe Trading Triad??
Candle Charts Candle Charts Candle Charts
Capital Preservation
Capital PreservationWesternWesternWestern
32
Volume confirms signalVolume confirms signal
High Volume Hammer
33
STOPSSTOPS
Shooting star
Bearish Engulfing Pattern
Shooting Star (convergence)Shooting Star (convergence)Shooting Star
