Upload
others
View
6
Download
3
Embed Size (px)
Citation preview
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 1
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
With
Steve Nison, CMTPresident: Candlecharts.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 2
• Easy to Understand • Early Reversals• “Safety First”• East + West• All FX markets• All Time Frames • Accelerates Analysis
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 3
"Forex trading is highly speculative in nature and Forex market should only be conducted with risk capital you can afford to lose"
• Current volatility in FX very high. Especially good time to trade
• Almost purely technical • Largest financial market • No “insider” information• Longer running trends• Far fewer instruments• Trade all hours while the market is open
(5 ½ days a week)• Trade just as easily in up or down
markets• Provides an alternative • Easy entry: $50 minimum account size
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 4
Nison Candlesticks for FXNison Candlesticks for FX
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 5
Quick review of candlestick essentials Doji essentials Using real bodies to gauge force of trend Importance of shadows Correctly using single, double and triple
candlestick patterns Avoiding “Profit Leakers” Helping to avoid buying on false
breakouts Candlestick pattern variations for FX When to use a candlestick signal for a
new trade and when to use to exit an existing trade.
Using candlesticks as protective stops Importance of short term trend
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 6
Candlestick Charting
Techniques
Candlesticks +Western Indicators
Candlesticks + Trade Management
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 7
Using candlesticks + West for increased trade confidence
Candlesticks with moving averages
Candlesticks with Bollinger Bands
Candlesticks with trendlines
Change of Polarity
Falling off the Roof
Crack and Snap
Candlesticks with Oscillators
Candlesticks with Retracements
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 8
Candlesticks in context
Adapting to the market
Candlestick confirmation
Steve’s most important trade
management rule
Avoiding #1 mistake made by FX
traders
If… Then trading rule
Importance of Trend
Adapting to the Market Identifying is support/resistance is
strong or weak
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 9
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 10
Candlestick Charting
Techniques
Candlesticks +Western Indicators
Candlesticks + Trade Management
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 11
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 12
Simple to use
© Steve Nison’s Candlecharts.com
Benefits of Nison Candlesticks
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 13
www.nisonforexacademy.com
The Framework:Analyzing Real Bodies
and Shadows
The Framework:Analyzing Real Bodies
and Shadows
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 14
“Without oars you cannot cross in a boat”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 15
www.candlecharts.com
open close
open
Real Body
high
low
Real Bodies / Shadows
ANATOMY OF THE CANDLESTICK LINE
close
Shadow
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 16
www.nisonforexacademy.com
21
2223
242526
27
28session open high low close1 22 26 21 26
2 26 27 26 273 23 27 22 224 25 28 22 25
5 27 27 24 24
1 2 3 4 5
Reading the Market’s MessageUsing the data below, draw the candlestick lines and then analyze what
each candlestick line says about who’s in control of the market
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 17
www.nisonforexacademy.com
21
2223
242526
27
28session open high low close1 22 26 21 26
2 26 27 26 273 23 27 22 224 25 28 22 25
5 27 27 24 24
1 2 3 4 5
Reading the Market’s MessageUsing the data below, draw the candlestick lines and then analyze what
each candlestick line says about who’s in control of the market
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 18
www.nisonforexacademy.com
Nison Power Concept
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 19
www.nisonforexacademy.com
Who’s in control?
“The Real Body is the Essence of the Price Movement”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 20
www.nisonforexacademy.com
Who’s in control?
Basic Criteria:Small real body - black or white
Market Implication:Immediately preceding trend losing momentum.
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 21
www.nisonforexacademy.com
READING THE MARKET’S MESSAGE
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 22
www.nisonforexacademy.com
Basic Criteria:• Market in up or down trend• Open and close prices are the same
(or nearly the same)
Market Implication:Market at a point of indecision
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 23
www.nisonforexacademy.com
Doji = Caution
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 24
www.nisonforexacademy.com
CANDLES GIVE YOU TWICE THE INFORMATION AS A BAR CHART
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 25
www.nisonforexacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 26
www.nisonforexacademy.com
What does this bar chart say?
Holding the highs very well so looks fine
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 27
www.nisonforexacademy.com
Saved by the light of the candles!
Who is in charge at the green arrow sessions?
Who is in charge here?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 28
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 29
www.nisonforexacademy.com
One of the Best Ways to Make Money…..
Resistance zone
What are the candle signals at the new highs?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 30
www.nisonforexacademy.com
Candles and early reversals
doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 31
www.nisonforexacademy.com
Doji compared to spinning tops in FX
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 32
www.nisonforexacademy.com
Reading the Market’s Message
What is happening at the 1.25 area?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 33
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 34
www.nisonforexacademy.com
Candles to Exit
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 35
www.nisonforexacademy.com
Doji to lock in profits
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 36
www.nisonforexacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 37
www.nisonforexacademy.com
NISON CANDLES GIVE YOU X-RAY VISION
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 38
www.nisonforexacademy.com
Think this market had trouble near 91.90?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 39
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 40
www.nisonforexacademy.com
Criteria: Use the highest high of those two sessions (top of upper shadow) as resistance
Implication: Close over that area: market is “refreshed”
DOJI AS RESISTANCE
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 41
www.nisonforexacademy.com
DOJI AS RESISTANCE
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 42
www.nisonforexacademy.com
Doji as resistance
Doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 43
www.nisonforexacademy.com
Doji as resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 44
www.nisonforexacademy.com
Doji as resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 45
www.nisonforexacademy.com
Doji as Resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 46
www.nisonforexacademy.com
Is there a trend to reverse?
Doji and Trend
Doji in a “Box Range” is not a trading signal
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 47
www.nisonforexacademy.com
Candles in Context
Middle of range
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 48
www.nisonforexacademy.com
Candles in Context of Trend
Chart courtesy of Genesis FT
Chart courtesy of Genesis FT
Isn’t this doji in a trading range?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 49
www.nisonforexacademy.com
Doji in context of trend
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 50
www.nisonforexacademy.com
Candles in Context
Analyze these doji in the context of what happened before. Are any of these a more likely reversal and why?
A B C
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 51
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 52
www.candlecharts.com
Reading the Message of the candle line
The longer the real body the stronger the momentum.
The relative size and position of the shadow displays the extent of price rejection.
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 53
www.candlecharts.com
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.
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 54
www.nisonforexacademy.com
Bull shadows
Long lower shadows reflect where market rejects lower levels
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 55
www.nisonforexacademy.com
Bull shadows reinforce support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 56
www.nisonforexacademy.com
Bearish Shadows
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 57
www.nisonforexacademy.com
Bear shadows and lower highs
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 58
www.nisonforexacademy.com
Importance of Shadows/Hammer
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 59
www.nisonforexacademy.com
Basic Criteria• Market in a downtrend• Small real body (either color) at, or
near, top of range.• Lower shadow at least 2x height real
body
Market Implication“A chance to buy at the bottom “
Support or ResistanceLow of hammer as support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 60
www.nisonforexacademy.com
Hammer
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 61
www.nisonforexacademy.com
Quickly reading the “Mood of the Market”
Hammers confirming support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 62
www.nisonforexacademy.com
Dual hammers
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 63
www.nisonforexacademy.com
Dual Hammers
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 64
www.nisonforexacademy.com
DUAL HAMMERS- EXPANDING ON A BASE
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 65
www.nisonforexacademy.com
Hammer at a higher low
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 66
www.nisonforexacademy.com
Hammer to Enter- Doji to Exit
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 67
www.nisonforexacademy.com
Did this hammer work?
If this was target, then yes
If this was target, then no
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 68
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 69
Acandlesticklineorpatternrequirestwocriteria:
• Theshapeofthelineorpattern• Theprecedingtrend
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 70
www.nisonforexacademy.com
Hammer Shape Wrong Trend
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 71
Introducing:Nison Candle Highlighter for MT4
With 28 Nison Certified Candlestick Signals
For MT4
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 72
Is it a valid Nison candle?
Not hammers!
For MT4
nisoncandlescanner.com/mt4/
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 73
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 74
www.nisonforexacademy.com
Hammer as support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 75
www.nisonforexacademy.com
Increasing confidence factor
Hammer and building a base
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 76
www.nisonforexacademy.com
Hammer as Support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 77
www.nisonforexacademy.com
Hammers as Support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 78
www.nisonforexacademy.com
Hammers as Support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 79
The market will often retest the lower shadow of the hammer
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 80
www.nisonforexacademy.com
Will often retest lower
shadow
Patience to lower risk
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 81
www.nisonforexacademy.com
Expanding on a base
Will often retest lower shadow
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 82
www.nisonforexacademy.com
Which three prices of the session are on the high?
What happened during the session and by session’s end?
Dragonfly Doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 83
www.nisonforexacademy.com
Hammer your way to profits
Dragonfly doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 84
Basic Criteria:Same shape as Hammer but market in downtrend
Market Implication:In theory, potential bottom reversal
Support or Resistance:Not used as support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 85
www.nisonforexacademy.com
Inverted hammer with bullish confirmation
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 86
www.nisonforexacademy.com
Inverted hammer with bullish confirmation
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 87
www.nisonforexacademy.com
Inverted hammer with bullish confirmation
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 88
www.nisonforexacademy.com
Inverted hammer w/o confirm
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 89
www.nisonforexacademy.com
Inverted hammer w/o confirm
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 90
www.candlecharts.com
Evolution of Charts:The 1st Dimension
Line chart
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 91
www.candlecharts.com
Evolution of Charts:The 2ND Dimension
Bar chart
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 92
www.candlecharts.com
Evolution of Charts:The 3rd Dimension
Candlestick chart
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 93
www.nisonforexacademy.com
Basic Criteria:• Market in up trend• Small real body (black or white) at,
or near, bottom of session• Upper shadow at least twice height
of the real body
Market Implication:Potential top reversal
Support or Resistance:High of signal as resistance
The Shooting Star
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 94
These are NOT shooting stars!‐Why?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 95
www.nisonforexacademy.com
Dual shooting stars
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 96
www.nisonforexacademy.com
LOOKING AT THE STARS
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 97
www.nisonforexacademy.com
“Trouble Overhead”Think the £ had trouble here?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 98
www.nisonforexacademy.com
THINK THE £ HAD TROUBLE NEAR 1.7040?
If I had only seen this!
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 99
www.nisonforexacademy.com
Shooting Star confirms resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 100
www.nisonforexacademy.com
Candles as support/resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 101
www.nisonforexacademy.com
Shooting Star as resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 102
www.nisonforexacademy.com
SHOOTING STAR AS RESISTANCE
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 103
www.nisonforexacademy.com
Increasing the confidence of your trade
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 104
www.nisonforexacademy.com
Shooting Star shape – wrong trend
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 105
www.nisonforexacademy.com
Which three prices of the session are on the low?
What happened during the session and by session’s end?
Gravestone Doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 106
www.nisonforexacademy.com
Gravestone Doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 107
www.nisonforexacademy.com
Shooting Star near resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 108
www.nisonforexacademy.com
25 day moving average
Close under m.a. support area but note how we got an earlier reversal with the gravestone
Gravestone doji
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 109
www.nisonforexacademy.com
Importance of correct knowledge
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 110
Basic CriteriaSame shape as Hammer but market in uptrend
Market ImplicationIn theory, potential top reversal
Support or ResistanceNot used as resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 111
“If it appears from below, buy. If it appears from above then sell.”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 112
www.candlecharts.com
Theremustbebearishconfirmationforthehangingman.Thismeanswaitingforanopen– orevenbetter– acloseunderthebottomofthehangingman’srealbody.
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 113
www.nisonforexacademy.com
Hanging Man with bear confirm
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 114
www.nisonforexacademy.com
Hanging Man without confirm
Why is this not a hanging man
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 115
www.nisonforexacademy.com
Hanging Man without confirm
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 116
Shooting star
Hammer
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 117
High Wave Candles
Criteria: very long shadows and lower small real body - color not important
Implication: Trend is losing force
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 118
Criteria: very long shadows and lower small real body - color not important
Implication: “Market has lost it’s sense of direction”
Long Legged Doji – “Rickshaw Man”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 119
www.nisonforexacademy.com
High Wave Candle
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 120
www.nisonforexacademy.com
High Wave candles
Market is confused
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 121
www.nisonforexacademy.com
Review of FX and candle benefits Using real bodies to gauge force of
recent move How candles can preserve trading
capital
How candles can be used not only for early entries, but also for exiting
Shadows as part of your candle
analysis Importance of short term trend to define
candle signals
Single candle signals Why the hanging man and inverted
hammer need price confirmation
Using candles as support or resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 122
www.nisonforexacademy.com
www candlecharts com
“Combinations of bullish and bearish candle lines indicate the direction of the market and investors psychological conflicts at important turning points.”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 123
www.nisonforexacademy.com
closeopen
Criteria:• White real body wraps around preceding black real body• Market in down trend
•Implication: Market bottoming out
Non FX Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 124
www.nisonforexacademy.com
close
open
Criteria:• White real body wraps around preceding black real body• Market in down trend
•Implication: Market bottoming out
FX Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 125
www.nisonforexacademy.com
Bullish Engulfing
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 126
www.nisonforexacademy.com
Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 127
www.nisonforexacademy.com
BULLISH ENGULFING PATTERN
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 128
www.nisonforexacademy.com
Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 129
www.nisonforexacademy.com
Getting into the market before it makes its move
Another bullish engulfing pattern confirming support area
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 130
www.nisonforexacademy.com
Bullish Engulfing Pattern as Support
www.nisonfx.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 131
www.nisonforexacademy.com
Bullish Engulfing Pattern as Support
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 132
FX Profit Leaker
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 133
www.nisonforexacademy.com
Power of Education
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 134
www.nisonforexacademy.com
close
open
Criteria:•Black real body wraps around preceding white real body•Market in up trend
Implication: ‘Bulls have been constrained”
Non FX Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 135
www.nisonforexacademy.com
close open
Criteria:•Black real body wraps around preceding white real body•Market in up trend
Implication: ‘Bulls have been constrained”
FX Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 136
www.nisonforexacademy.com
Bullish Engulfing Pattern to Bearish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 137
www.nisonforexacademy.com
Bearish Engulfing
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 138
www.nisonforexacademy.com
Bearish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 139
www.nisonforexacademy.com
Bearish Engulfing
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 140
www.nisonforexacademy.com
Bearish Engulfing Pattern
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 141
www.nisonforexacademy.com
Bearish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 142
www.nisonforexacademy.com
Bearish Engulfing Pattern as resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 143
www.nisonforexacademy.com
Topoutside reversal
Bottomoutside reversal
Western Outside Reversals
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 144
www.nisonforexacademy.com
Engulfing Patterns compared to Outside Reversal
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 145
www.nisonforexacademy.com
Bearish Engulfing near resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 146
www.nisonforexacademy.com
Reading the Market’s Message: Quickly and Accurately
If I had only known this!
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 147
www.nisonforexacademy.com
Bullish Bearish
Engulfing Patterns
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 148
www.nisonforexacademy.com
Engulfing Patterns
Bullish Bearish
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 149
www.nisonforexacademy.com
Both are Bearish Engulfing
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 150
www.nisonforexacademy.com
Bullish Engulfing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 151
www.nisonforexacademy.com
Misinformation can cost you
?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 152
Is it a valid Nison candle?
Not Bullish Engulfing Pattern!
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 153
www.nisonforexacademy.com
1. What gave us a hint bulls losing force during rally?
FX Chart Challenge
2. What pattern is this?
3. What candle signals gave u a hint the market was basing out even before the bullish engulfing?
www.nisonforexacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 154
www.nisonforexacademy.com
Non Forex Dark Cloud Cover
Criteria:• Opens above prior high (or close) • Black real body closes deeply into prior long white candle • Market moving north
Implication: “Advance is exhausting itself”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 155
www.nisonforexacademy.com
Forex Dark Cloud Cover
Criteria:• Opens at (or within few pips) of prior close • Black real body closes deeply into prior long white candle • Market moving north
Implication: “Advance is exhausting itself”
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 156
www.nisonforexacademy.com
Dark Cloud Cover
Not dark cloud covers
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 157
www.nisonforexacademy.com
Dark Cloud Cover
Close – open 1 pip
Didn’t get deeply into white candle
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 158
www.nisonforexacademy.com
Dark Cloud Cover
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 159
www.nisonforexacademy.com
Dark Cloud Cover as Resistance
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 160
www.nisonforexacademy.com
Dark Cloud Covers
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 161
www.nisonforexacademy.com
Dark Cloud Cover as Resistance
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 162
www.nisonforexacademy.com
Criteria:• Market moving south• Opens below prior low (or close) • White candle closes more than halfway into prior long black candle
Implication: “hint that the decline is exhausting itself”
Non Forex Piercing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 163
www.nisonforexacademy.com
Criteria:• Market moving south• Opens at (or near) prior close• White real body close more than halfway into long prior black candle
Implication: “hint that the decline is exhausting itself”
Forex Piercing Pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 164
www.nisonforexacademy.com
Piercing Pattern
Chart courtesy of Genesis FT
Piercing pattern
Not a piercing pattern
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 165
www.nisonforexacademy.com
Piercing Pattern Confirming Support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 166
www.nisonforexacademy.com
Piercing pattern at support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 167
www.nisonforexacademy.com
Piercing Pattern as support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 168
www.nisonforexacademy.com
Non Forex Harami
white or black
white or black
Criteria:• First candle is unusually long• Second real body spinning top or doji• Second real body within prior real body• Second real body can be black or white
Implication: ‘Change in flow of market”Bearish
Bullish
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 169
www.nisonforexacademy.com
Forex Harami
black real body
white
Criteria:• First candle is unusually long• Second real body spinning top or doji• Second real body within prior real body• Second real body opposite color
Implication: ‘Change in flow of market”
Bearish
Bullish
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 170
www.nisonforexacademy.com
Bear Harami
Chart courtesy of Genesis FT
Not harami
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 171
www.nisonforexacademy.com
Bull Harami
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 172
www.nisonforexacademy.com
Bull Harami
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 173
www.nisonforexacademy.com
Harami
Bearish
Bullish
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 174
www.nisonforexacademy.com
Harami confirms resistance
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 175
www.nisonforexacademy.com
Candles in Context: Increasing your confidence
We have two harami – where would you be confident?
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 176
www.nisonforexacademy.com
white or black
Criteria:• Market in down trend • First candle long black• Second real body (spinning top, black or white) doesn’t overlap first session’s real body• Third candle (white) closes deeply in first black real body
Implication: Bulls are taking control
Non FX Morning Star
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 177
www.nisonforexacademy.com
Most time black or doji
Criteria:• Market in down trend • First candle long black• Second real body is black or doji• Third candle (white) closes deeply in first black real body
Implication: Bulls are taking control
FX Morning Star
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 178
www.nisonforexacademy.com
Morning Star Confirms Support
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 179
www.nisonforexacademy.com
Morning Star variation
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 180
www.nisonforexacademy.com
Morning Star at support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 181
www.nisonforexacademy.com
Evening Star
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 182
www.nisonforexacademy.com
Evening Star
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 183
www.nisonforexacademy.com
Evening and Morning Stars
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 184
www.nisonforexacademy.com
Early Reversals
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 185
www.nisonforexacademy.com
Variation of Evening Star
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 186
www.nisonforexacademy.com
Evening Star
Chart courtesy of Genesis FT
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 187
www.nisonforexacademy.com
Evening Star as resistance area
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 188
www.nisonforexacademy.com
Go in the direction of the window
Corrections stop at the window
Windows
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 189
www.nisonforexacademy.com
A rising window is support
Support Zone
Corrections stop at the window
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 190
www.nisonforexacademy.com
A falling window is resistance
Corrections stop at the window
Resistance Zone
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 191
www.nisonforexacademy.com
Large and small windows
Small window
Large window with the bottom of this window as pivotal support
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 192
www.nisonforexacademy.com
Small Window
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 193
www.nisonforexacademy.com
Closed over resistance
Windows
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 194
www.nisonforexacademy.com
Closed under the window’s support
Breaks the rising window‘s support area
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 195
www.nisonforexacademy.com
Windows
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 196
www.nisonforexacademy.com
How education saves you money
Bearish engulfing pattern, but you must not sell here!
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 197
www.nisonforexacademy.com
How it all comes together – The highs in the NASAQ
1
5
4
321- Rising Resistance Line
2- Shooting Star
2a – Bearish Engulfing
3- Falling Window
4- Bearish Divergence
5- High-Wave Candle
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 198
Benefit #1
Leverage
© www.nisonoptionsacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 199
www.nisonoptionsacademy.com
Scenario 1 – buy at hammerMkt @ $395: 400 call @ $11.30
Exit at doji ( red arrow 13 days after hammer) mkt @ 447: 400 call @ $47.50 (320 % return)
Scenario 2 – buy based on MACDMkt @ $418 : 420 call @ $13.45
Exit at doji (5 days later) mkt @ 447: 420 call @ $31.20 (132% return)
Result: Nison candlesticks generated over 2x the profit!
Nison Candlestick strategies for long calls
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 200
Nison Candlestick Secrets For Profiting in Options
www.nisonoptionsacademy.com/wp/frontline/
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 201
1 2 3
A- What candle signals at 1 to 4 reflect trouble near 1.9550?
FX Chart Challenge
www.nisonforexacademy.com
4
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 202
What 3 signals hint of a reversal?
Chart courtesy of Genesis FT
FX Chart Challenge
www.nisonforexacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 203
FX Chart Challenge
What are the candle patterns at 1 and 2 and what do you say about them
Name the reversal signals at resistance near 1.4950 (remember this is FX so we are more flexible with the patterns) at 3 and 4
34
3
4
1
2
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 204
FX Chart Challenge
What patterns are at 1,2,3 and 4?Of those four patterns which are the best trade candidate and why?
1 2
3
4
www.nisonforexacademy.com
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Candlestick Essentials and Beyond for FX
www.nisonforexacademy.com 205
www.nisonforexacademy.com
Effectively using double and triple candle patterns including: Engulfing patterns Dark cloud cover Piercing pattern Harami Stars Windows
How each of these patterns is different in forex compared to non forex markets
Chart Challenges