Steve Nison’s Candlesticks Re-Ignited Advanced Workshop .
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesAdvancedWesternTechnical ToolsFounder www.candlecharts.comand President: sternChartingToolsTrade Management2132141
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series2Western Technicals Enhance winning %s Using candles fornew trade Price targets215A candle signal is normally not asufficient reason for a new trade216East West ConfirmationWhere a candlesignal confirms aWestern technicalsignalwww.candlecharts.com2172
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesEast West Greater Winning %www.candlecharts.com218Candles plus .www.candlecharts.com219Candles plus Bollinger Bands www.candlecharts.com2203
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesConvergence of CluesOpen Interestwww.candlecharts.com221East and West Higher Confidencewww.candlecharts.com222Candles look good- but what about m.a?www.candlecharts.com2234
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCrack and Snap with VolumeThe arrow points to a “Snap and Crack”. Whatdoes volume do to increase the likelihood of thistechnique working?www.candlecharts.com224Founder www.candlecharts.comand President: Candlecharts.com225www.candlecharts.com2265
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCandles and the ADX:The Perfect Fitwww.candlecharts.com Stands for Average Directional Indicator Shows how strongly a market is trending Does not show direction of trendwww.candlecharts.comStrong ADX withprices in up trend.227228Strong ADX withprices in down trend.www.candlecharts.com2296
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series12www.candlecharts.com230 Some technical indicators, such as moving averages,momentum trading, work better in strongly trendingmarkets. Some technical indicators, such as oscillators, workbetter in non trending markets. Traders check ADX to see if the technical indicatorthey use is in right trend environmentwww.candlecharts.com Use only on daily charts –except for FX Use only for entries Lagging indicator Slow to recognize a new trendwww.candlecharts.com2312327
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesSteveApple has recently gone from 120 to 150 and the ADX on a daily basishas not moved up. This is surprising. Comments? - Pete233www.candlecharts.com Common mistake- lookingat ADX level. Slope is the key Slope change in ADX fromyesterday to today.(today’s ADX level-yesterday’sADX level) Greater the slope, strongerthe trend234-.31ADX 22.04ADX at 20.96Slope 24.11-22.04 2.07ADX 24.11ADX at 20.64.What do we need todetermine the slopeon this day?Slope 20.64-20.96 -.32www.candlecharts.com2358
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesADX:22.38Slope 2.0814 PeriodADX slopeincreasing.5 or moreADX:27.56ADX:20.30ADX:26.03What is the slope?Strong uptrend?www.candlecharts.comMinimum:14 PeriodADX slope .25 orless-.31236ADX:18.26ADX:18.57Strict: 14PeriodADX tops.netwww.candlecharts.com2389
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCandles and ADX - The Perfect FitReversal candleshelp pick top andbottoms.Increase % by notgoing againststrong trends.239240www.candlecharts.comMinimum:14 PeriodADX slope .25 orlessStrict: 14PeriodADX slopedecreasingDo we have to measure theADX slope on this hammer?www.candlecharts.com24110
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesMinimum:14 PeriodADX slope.25 or less-.40-.10Strict: 14PeriodADX slopedecreasing242www.candlecharts.comADX slopes2.24, 2.53, 2.67Bull shadows on descent. Butbased on ADX which of these ismore likely a turn?Why didn’t Iput ADXnumbers forthese?243www.candlecharts.comADX : 27.98ADX : 30.38What candle patterns are atthe dashed arrows?ADX : 31.80What is the ADX telling us?www.candlecharts.com24411
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series .95Minimum:14 PeriodADX slope .25 orless-.31ADX:18.26ADX:18.57Strict: 14PeriodADX slopedecreasing245www.candlecharts.comSlope .97246www.candlecharts.comFOR BEAR CANDLEREVERSAL SIGNALS Step 1 – get candlesignal Step 2 – ADX showsuptrend easing orno trend:ADX slopeincreases byless than .25,and better ifslope isnegativeADX:42.85and 41.02so slope is-1.83www.candlecharts.com24712
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesFOR BULL CANDLEREVERSAL .23 Step 1 – get candlesignal6 Step 2 – ADX showsdowntrend easing or notrend:ADX slope increasesby less than .25, andbetter if slope isnegative13245248www.candlecharts.comFounder www.candlecharts.comand President: Candlecharts.com249Gravestone doji at resistanceAfter the gravestonewhere is a potentialtarget?www.candlecharts.com25013
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCandles for reversals and Western for targetsBearish engulfingpattern at top of bullchanneltarget251www.candlecharts.comSwing TargettargetFirstlegwww.candlecharts.com252East and WestDoji as signal to exitwww.candlecharts.com25314
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesBecoming a Confident Traderwww.candlecharts.com254Head and ShouldersLeft ShoulderHeadRightShoulderNecklineSellsignalHead and Shoulders Topwww.candlecharts.com255Three Buddha Pattern25615
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesWhy we are here!We got the reversal here withcandles .Compared to here witha classic western signal257www.candlecharts.comHow Education Saves You 123 New resistanceOld supportbecomes .1- Bear Harami2- Dark Cloud Cover3- Bearish Engulfing Pattern258www.candlecharts.comTASC Interview - Jan. 24, 2003 S&P at 8601) Once the neckline’ssupport is broken, itshould becomeresistance.Head andShoulder top2) To get a target with thehead and shoulders topwe measure from the topof the head to theneckline.necklineInterview“ the heads and shoulders top on theS&P gives a target to near 775. A closeover 870 would void this.”Hammer25916
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesSTEVE’S FAVORITEMEASURING TACTIC260“Box Range” Breakoutwww.candlecharts.com261Box range breakoutHarami withtarget bottom ofboxwww.candlecharts.com26217
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesBox range Breakoutswww.candlecharts.com263East & West Profitswww.candlecharts.com264Box range Breakout/ momentum tradingwww.candlecharts.com26518
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series266www.candlecharts.comThe Tools of the West withthe Light of the e Nison Candlestick Screener Using candles at support or resistancefor the high probability tradeswww.candlecharts.com26819
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesThe Nison Candlestick Screener Two simple questionsQuestion 1- Is the market at support or resistance?Question 2- Are there any reversal candles?www.candlecharts.com269The Nison Candlestick Screener www.candlecharts.com270The Nison Candlestick Screener www.candlecharts.com27120
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesThe Nison Candlestick Screener 2) What is thiscandle linehinting?1) Who’s in control duringthis ascent?www.candlecharts.com272The Nison Candlestick Screener Major resistance 2.00-2.01www.candlecharts.com273How education saves you 1) Is the at resistance?2) Are there any candle signalsshowing hesitation?Long term resistance zonewww.candlecharts.com27421
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesThe Value of Owning the KnowledgeLong term resistancezonewww.candlecharts.com275The Value of Owning the Knowledgewww.candlecharts.com276The Nison Candlestick Screener www.candlecharts.com27722
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesThe Nison Candlestick Screener Near support?Any reversal signals yet?www.candlecharts.com278The Nison Candlestick Screener www.candlecharts.com279The Nison Candlestick Screener “Market refreshed”Near resistance?Any reversal signals yet?28023
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series Using Measured Moves including: Box rangeHead and ShouldersSwing TargetsThe Candlestick Screener 281Founder www.candlecharts.comand President: Candlecharts.com 282What are Sectors?Technically analyze sectors like any other marketCan’t trade sectors –so why are sectors important to traders?www.candlecharts.com28324
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCandles and Sectorswww.candlecharts.com284Why are Sectors importantSectors account for 37-60%of an individual stock’s performanceThis means you need toknow what the sector is doing!285www.candlecharts.comHow can we use Sectors? Bottom Up: Stock to Sector Top Down : Sector to Stockswww.candlecharts.com28625
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series Check the stock’s sector Try to place new trades in direction of sector outlook If must go counter trend to sector, use to take 288Bottom Up Sector AnalysisBiotech Sector- Aug 17AMGN - Aug 17Although fallingwindow what is it’s sectorstrongly hinting?www.candlecharts.com28926
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesBottom Up Sector Analysis290www.candlecharts.comBottom Up Sector AnalysisBuy ?AMGN – Sept. 11Biotech Sector291www.candlecharts.comBottom Up Sector AnalysisBuySept.11www.candlecharts.com29227
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series293www.candlecharts.comSetting up scanning pages forNison Sector Analyses294www.candlecharts.comScanning with Nison Candle Sector AnalysesSTEP 1 – Scan SectorsBanksInternetsBiotechAug. 16Gold- SilverSemiswww.candlecharts.comRetail29528
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesScanning with Nison Candle Sector AnalysesSTEP 2 – Scan Component Stocks in Chosen Sector(s): Internetsfor this exampleAug. 16296www.candlecharts.comScanning with Nison Candle Sector AnalysesSTEP 3 – Do Analysis on Stock for Potential TradeAug. 16www.candlecharts.com297Scanning with Nison Candle Sector AnalysesAug. 16www.candlecharts.com29829
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesETFsExchange Traded Funds Track All Major Sectors and Indices Popularity/Liquidity Can Trade ETFs299www.candlecharts.comAnalyze and Trade ETFs like any other marketDark cloud confirming resistanceGolden and Dead CrossesBull sashpatternsHammerswww.candlecharts.com300Windows and ETFswww.candlecharts.com30130
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesSectors Important for stocksCan analyze with candlesBottom up tradingTop down to filter Scan for best sectorsFind best stocks in those sectorsAnalyze those stocksETFs Ability to trade sectorsInstant diversification302Founder www.candlecharts.comand President: Candlecharts.com3033Trade Management “Market Chameleon” “Candles in Context” Risk-reward Exit Strategieswww.candlecharts.com30431
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesAdapting to the MarketBeing a Market Chameleon:As market conditions change,adjust your market stance.305www.candlecharts.comAdapting to the MarketLooks ing to the MarketTargetwww.candlecharts.com30732
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesAdapting to the MarketSell herewww.candlecharts.com308Adapting to the Marketwww.candlecharts.com309Adapting to the Marketwww.candlecharts.com31033
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesAdapting to the dlecharts.com311Become a Market 2Candles in ContextAnalyzing candlesignals within thecontext ofsurroundingtechnical picturewww.candlecharts.com31334
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesMisinformation can cost you ?www.candlecharts.com314Same Signal- but how different the strategy!www.candlecharts.com315Which is a Bettertrading signal?www.candlecharts.com31635
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesCandles in ContextDark Cloud mWhich is a bettertrading signal?HammerMorning Star318Candles in ContextMorning StarHammerwww.candlecharts.com31936
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesAlways Check Risk – Reward1. What is your price risk?2. What is your target?Do you have dwww.candlecharts.com321Waiting for time to ripenClassic bearishengulfing pattern:But what aboutrisk/reward aspect?www.candlecharts.com32237
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesTrade Management Essentials Adapting to the MarketCandles in ContextImportance of risk/reward323Founder and President: ngyour Assets38
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesSlide 115The race is not always to theswiftest, but to those who keeprunning.326www.candlecharts.com327Protective Stops keep you in the game!Lookspromising atthe whitecandleswww.candlecharts.com32839
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesHow Education Saves you HammerClosed under support329www.candlecharts.comHow Education Saves you Hammer330www.candlecharts.comExit Strategies Protective Stops Time Stops Trailing Stops Steve Nison’sCandlecharts.com33140
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Serieswww.candlecharts.com332If the market does not actas expected within aboutfive sessions then considerexitingwww.candlecharts.com333Don’t Stay AroundWhat are you doing hangingaround! You’re wastingprecious resources.Hammer and Bull EngulfChart courtesy of Genesis FTwww.candlecharts.com33441
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesYou’re Wasting om336Trailing StopsAs the market movesin your direction –stop is adjusted tohelp ride the trend.www.candlecharts.com33742
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational Series“Golden” and “Dead” CrossesCompares two moving averagesGOLDEN CROSS: shorter crosses above longerDEAD CROSS: shorter crosses under longerwww.candlecharts.com338Answer: 3 and 12 3
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesTrailing stops - letting the profits run“I usually exit, itcorrects somewhatbut then continuesto go in the originaldirection after that.”ShootingStarFallingwindowYou sold at shooting star orfalling window. A rally from abull harami gets you nervousand you exit. But you’re stillplaying with the market’smoney- so another option:trailing stop .341www.candlecharts.comTrailing stops - letting the profits runShootingStarFalling windowWhere you got nervous342www.candlecharts.comLetting Profits RunCould take someor all profits hereShooting starOr use dead crossas your trailingstop and wouldthus exit hereBuy and setprotective stopwww.candlecharts.com34344
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesTrailing Stops to let profits runNow at targetDoji warns ofcaution. But youwant to letprofits run.Potential TargetBuy and setprotective stopwww.candlecharts.com344Trailing Stops to let profits rundojiwww.candlecharts.com345Exit StrategiesProtective StopsTime Stops Trailing Stops 34645
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop:Advanced Western and Trade Management with CandlesticksVolume 4 of the Nison Educational SeriesTrading Journal(setting up the Trade)From Toni Turner’s Book- Short Term Trading in the New Stock Market - www.t
Steve Nison’s Candlesticks Re-Ignited Advanced Workshop: Advanced Western and Trade Management with Candlesticks Volume 4 of the Nison Educational Series 2 Enhance winning %s Using candles for new trade Price targets Western Technicals 215 A candle signal is normally not a s
Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success For free continuing education and exclusive support for this video go to www.nisonu.com 1 Quickly read the k’ Candlestick Charts www.c
later brought to the Western world by Steve Nison. Steve Nison introduced candlesticks to the world inhis 1991 book “Japanese Candlestick Charting Techniques,” and they are nowvery popular because of their simplicity and unique insight into the sentiment ofthe market. Candlestick charts are most oen used in the technicalanalysis of equity and
candlesticks between the two candlesticks that form the Tweezers pattern. Even in this case you should not ignore the Tweezers as a potential reversal signal. When there are several candlesticks between the two that make the Tweezers pattern, they may form Double Tops or Double Bottom
Japanese Candlesticks. I’ve studied every possible angle about these candlesticks, but no one has told me the real secrets on the market. One of my trading mentors, the person who’ve changed the way I think and behave has told me: “when you understand the secrets of Japanese Candlesticks
Candlestick patterns to forecast the direction of the rice market. It was reported that he took 100 profitable consecutive trades! Japanese Candlesticks were unknown to the West until the late 1980s when Steve Nison started writing articles that explained the new price charting method. His book, J
JAPANESE CANDLESTICKS In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credite
him "Candlesticks Nison.") Evan is now four, and he enjoys "typing" on my keyboard. I tell you this so that if there are typos, I now have an excuse. My daughter, Rebecca, is eight and very bright. I have jokingly said that I wan
adult Korean-as-a-foreign-language (KFL) learners who intend to maintain and strengthen their knowledge of essential Korean grammar and for classroom-based learners who are looking for supplemental grammar explanations and practices. Consequently, this book differs from existing KFL materials whose primary purpose is to help KFL learners acquire four language skills, such as listening .
