Steve Nison’s Quick Start Guide to Correctly Using …...Steve Nison’s Quick Start Guide to Correctly Using Candlesticks 6 Evolution of Charts: The 3rd Dimension candlestick chart

Steve Nison’s Quick Start Guide to Correctly Using Candlesticks

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WithSteve Nison, CMTPresident: Candlecharts.com


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• Any market• Any time frame• Simple to apply• Safety first trading• Early reversals for razor

sharp entries and exits

Benefits of Nison Candlesticks

www.candlecharts.com

Profit Leaker

Profit Leaker


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open close

open

RealBody

high

low

Real Bodies / Shadows

ANATOMY OF THE CANDLESTICK LINE

close

Shadow


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28session 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

1 2 3 4 5

Reading the Market’s Message

Using the data below, draw the candlestick lines and then analyze whateach candlestick line says about who’s in control of the market

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28session 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

1 2 3 4 5

Reading the Market’s Message

Using the data below, draw the candlestick lines and then analyze whateach candlestick line says about who’s in control of the market


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Nisoncandlestickshelp you get

into the marketbefore the big

moves

Evolution of Charts:The 1st Dimension

Line chart

Evolution of Charts:The 2ND Dimension

Bar chart


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Evolution of Charts:The 3rd Dimension

candlestick chart


Black or white candle with long uppershadow compared to real body.

Market Implication:

Potential top reversal

•Market Implication:

For a more details and nuances on successfully using this signal refer toVolume 1-Module 1 and Volume 3-Module 2 of the Nison Educational Series


Shooting Star “signals trouble overhead”


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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 details and nuances on successfully using this signal refer toVolume 1-Module 1 and Volume 3-Module 3 of the Nison Educational Series.


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Doji

The red arrowsshow the bullshave completecontrol. The dojialters the trend.

Doji


25 daymovingaverage

Close underm.a. supportarea

Candlestick for Early Reversals

doji


The cost of not using candles

Holding the highs verywell so looks fine

Chart courtesy of Genesis FT


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Now what does this candle chart say?

Does the market stilllook fine?

Chart courtesy of Genesis FT


Saved by the light of the candles!

Warren Buffet’s Rules ofMoney Management

Rule 1 – Not to lose money

Rule 2 – Don’t forget rule 1


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Saved by the light of the candles!

Those poortraders/investors whogot fooled into buyinghere.

Profit Leaker


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Shadows

Remember: location and size of the shadow should be considered whenanalyzing the market psychology.

Implication: Bearish long upper shadow offsets “rallying strength.”Bullish long lower shadows hints bears losing force.


Although this market isdescending, the longlower shadows offsetssome of the negativeoutlook

Long lower (bullish) shadows

Black or white candle with long lowershadow compared to real body.


For a complete explanation of this pattern and how to use it, go to:Volume 1-Disc 2 and Volume 3-Disc 2 of the Nison Educational Series


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Hammer as buy at $166.50

Education = Confidence = $uccess

Doji as exitat $169.30


Retest of hammer’s shadow


Chart Challenge

Say you bought atthe hammer @$25. What wouldyou do here andwhy?


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Profit Leaker


“To know where you stand is as importantas candlestick pattern recognition”

www.candlecharts.comwww.candlecharts.com

This doji is showing ashift in psychology since itcomes during a rally

Is this doji telling us there is somethingdifferent about the market?


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Doji in a Box Range



“Combinations of bullish and bearishcandle lines indicate the direction of themarket and investors psychologicalconflicts at important turning points.”

www.candlecharts.comwww.candlecharts.com

White real body that wraps aroundprior 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


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Dual candlestick signals


Black real body wraps around priorsession 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

During this time, themarket is ascending.However, what are

reasons for caution?

Chart Challenge


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Nison Power Concept

CandlestickCharting

Techniques

Candlesticks +Western

Indicators

Candlesticks + Trade Management

East + West ConfirmationWhere a candle signal confirms a Western technical signal


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EAST & WEST CONFIRMATIONEAST & WEST CONFIRMATION

Nison candles with:• Trendlines• Bollinger Bands• RSI• Stochastics• MACD• Price Patterns• Retracements• Moving Averages

Etc

Nison candles with:• Trendlines• Bollinger Bands• RSI• Stochastics• MACD• Price Patterns• Retracements• Moving Averages

Etc

Think this FX market had trouble near 91.90?


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East + West = Higher Confidence

Hammer atSupport

CandlestickCharting

Techniques

Candlesticks +Western

Indicators

Candlesticks + Trade Management

What is one of the best ways to make money?

Those poor traderswho got fooled intobuying here.


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Speed is the Essence of Successful Trading

Resistance zone


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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 EngulfPattern butwhat aboutprofit potential?

How trade management helps save money


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• 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

Volume 1: Candle Charting Essentials and Beyond“Apprentice Level”

Volume 2: Candles with western indicators & trade management“Senior Apprentice Level”

Volumes 3/4: Advanced candles withadvanced western indicators & advanced trade management

“Expert Level”

Quick Start Video“Novice Level”

Your next step


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Documents

Steve Nison’s Quick Start Guide to Correctly Using …...Steve Nison’s Quick Start Guide to Correctly Using Candlesticks 6 Evolution of Charts: The 3rd Dimension candlestick chart