Steve Nison – is Archive: Candlestick Charting Basics Spotting the Early Reversals Video“A good beginning is the most important of things.” (Japanese proverb)Candlestick patterns are a form of technical analysis and charting used in the stock market, forex market and all other markets..
Archive: Steve Nison – Candlestick Charting Basics Spotting the Early Reversals Video“A good beginning is the most important of things.” (Japanese proverb)Candlestick patterns are a form of technical analysis and charting used in the stock market, forex market and all other markets.
they is And can be used in all time frames, from those looking for long term investments to those who use swing trading or day trading, The power of candlesticks (also called Japanese candlestick charts) is that they excel at giving market turning points and when used properly can potentially decrease market risk exposure.You may have of some common candlestick chart patterns or candlestick terms like bullish engulfing pattern, doji, dark cloud cover, hammer and shooting star.This section discusses only a few of the scores of candlestick chart patterns..
And they can be used in all time frames, from those looking for long term investments to those who use swing trading or day trading, The power of candlesticks (also called Japanese candlestick charts) is that they excel at giving market turning points and when used properly can potentially decrease market risk exposure.You may have of some common candlestick chart patterns or candlestick terms like bullish engulfing pattern, doji, dark cloud cover, hammer and shooting star.This section discusses only a few of the scores of candlestick chart patterns.
important candlestick patterns is There are many and trading tactics not discussed in this basic introduction..
There are many important candlestick patterns and trading tactics not discussed in this basic introduction.
The goal of this section is is to illustrate how candlesticks (and especially Nison candlesticks) can open new and unique tools for technical analysis, but since this is an introduction this will not provide a trading methodology..
The goal of this section is to illustrate how candlesticks (and especially Nison candlesticks) can open new and unique tools for technical analysis, but since this is an introduction this will not provide a trading methodology.
times candlestick signals is For example, there are many should be ignored..
For example, there are many times candlestick signals should be ignored.
candlestick charts is This is where experience with comes in.WHAT ARE CANDLESTICKS?Japanese candlestick chart analysis, so called because the candlestick lines resemble candles, have been refined by generations of use in the Far East..
This is where experience with candlestick charts comes in.WHAT ARE CANDLESTICKS?Japanese candlestick chart analysis, so called because the candlestick lines resemble candles, have been refined by generations of use in the Far East.
Candlestick charts is are now used internationally by swing traders, day traders, investors and premier financial institutions.Candlestick charts:Are easy to understand: Anyone, from the person new to technical analysis to the seasoned professional trader can easily harness the power of candlestick charts..
Candlestick charts are now used internationally by swing traders, day traders, investors and premier financial institutions.Candlestick charts:Are easy to understand: Anyone, from the person new to technical analysis to the seasoned professional trader can easily harness the power of candlestick charts.
the same data is This is because, as will be shown later, required to draw a bar chart (high, low, open and close) is used for a candlestick chart.Provide earlier indications of market turning points: candlestick charts can send out reversal signals in a few sessions, rather than the weeks often needed for a bar chart reversal signal..
This is because, as will be shown later, the same data required to draw a bar chart (high, low, open and close) is used for a candlestick chart.Provide earlier indications of market turning points: candlestick charts can send out reversal signals in a few sessions, rather than the weeks often needed for a bar chart reversal signal.
turns is Thus, market with candlestick charts will frequently be in advance of traditional indicators..
Thus, market turns with candlestick charts will frequently be in advance of traditional indicators.
you is This will help to enter and exit the market with better timing.Furnish unique market insights: candlestick charts not only show the trend of the move, as does a bar chart, but, unlike bar charts, candlestick charts also show the force underpinning the move.Enhance Western charting analysis: Any Western technical tool you now use can also be used on a candlestick chart..
This will help you to enter and exit the market with better timing.Furnish unique market insights: candlestick charts not only show the trend of the move, as does a bar chart, but, unlike bar charts, candlestick charts also show the force underpinning the move.Enhance Western charting analysis: Any Western technical tool you now use can also be used on a candlestick chart.
Candlestick charts, is however, will give you timing and trading benefits not available with bar charts..
Candlestick charts, however, will give you timing and trading benefits not available with bar charts.
Eastern and Western analysis is This merging of will give you a jump on those who use only traditional Western charting techniques.Can be used in all markets such as the stock market, forex market, or futures or commodity markets and can be a powerful trading tool for option trading.Are used by those who do day trading, swing trading, active investing and for investing.What are Nison Candlesticks?If you’re serious about learning how to use candlestick charts, you owe it to yourself to do it the right way.With Nison candlesticks – candlestick training the right way- you can be sure you are getting the correct candlestick training..
This merging of Eastern and Western analysis will give you a jump on those who use only traditional Western charting techniques.Can be used in all markets such as the stock market, forex market, or futures or commodity markets and can be a powerful trading tool for option trading.Are used by those who do day trading, swing trading, active investing and for investing.What are Nison Candlesticks?If you’re serious about learning how to use candlestick charts, you owe it to yourself to do it the right way.With Nison candlesticks – candlestick training the right way- you can be sure you are getting the correct candlestick training.
so-called teachers is There are a lot of out there who have good intentions when it comes to explaining candlesticks..
There are a lot of so-called teachers out there who have good intentions when it comes to explaining candlesticks.
the truth is But is they haven’t done the work, or done the years of research, it takes to become The Expert at candlestick charting.Remember these Japanese candlestick chart patterns were refined by generations of use..
But the truth is they haven’t done the work, or done the years of research, it takes to become The Expert at candlestick charting.Remember these Japanese candlestick chart patterns were refined by generations of use.
candlestick charts is As the first to reveal to the Western world, I have painstakingly unraveled candlestick tradingtactics from the original Japanese sources and the top Japanese traders..
As the first to reveal candlestick charts to the Western world, I have painstakingly unraveled candlestick tradingtactics from the original Japanese sources and the top Japanese traders.
The danger is to traders is when other trainers – while well intentioned, begin adding their own variations and candlestick chartpatterns that aren’t part of the original set of Japanese candlestick patterns..
The danger to traders is when other trainers – while well intentioned, begin adding their own variations and candlestick chartpatterns that aren’t part of the original set of Japanese candlestick patterns.
your trading capital is Or, even more dangerous to is when they teach candlesticks incorrectly..
Or, even more dangerous to your trading capital is when they teach candlesticks incorrectly.
This false information is is what causes many traders to lose real money..
This false information is what causes many traders to lose real money.
it is But doesn’t have to be that way..
But it doesn’t have to be that way.
I is That’s why work so hard to teach you candlesticks the right way with Nison Candlesticks.The bottom line is this training works.CONSTRUCTING THE CANDLESTICK LINEThe broadest part of the candlestick line is the real body..
That’s why I work so hard to teach you candlesticks the right way with Nison Candlesticks.The bottom line is this training works.CONSTRUCTING THE CANDLESTICK LINEThe broadest part of the candlestick line is the real body.
It is represents the range between the session’s open and close.Constructing the Candle LineThe thin lines above and below the real body are called the shadows (sometimes called candlestick wicks)..
It represents the range between the session’s open and close.Constructing the Candle LineThe thin lines above and below the real body are called the shadows (sometimes called candlestick wicks).
The peak is of the upper shadow is the high of the session and the bottom of the lower shadow is the low of the session.If the close is lower than the open the real body is black..
The peak of the upper shadow is the high of the session and the bottom of the lower shadow is the low of the session.If the close is lower than the open the real body is black.
The real body is is white if the close is higher than the open..
The real body is white if the close is higher than the open.
The real body is is white if the close is higher than the open.The color and length of the real body reveals whether the bulls or the bears are in charge..
The real body is white if the close is higher than the open.The color and length of the real body reveals whether the bulls or the bears are in charge.
the candlestick chart lines is Note that use the same data as a bar chart (the open, high, low and close)..
Note that the candlestick chart lines use the same data as a bar chart (the open, high, low and close).
techniques is Thus, all Western-charting can be integrated with candlestick chart analysis.At Candlecharts.com, we have found the candlestick charts are most potent when merged with Western technical analysis..
Thus, all Western-charting techniques can be integrated with candlestick chart analysis.At Candlecharts.com, we have found the candlestick charts are most potent when merged with Western technical analysis.
we is Accordingly, harness the best charting techniques of the East and West to provide you with uniquely effective trading tools.USING CANDLESTICK CHARTSA critical and powerful advantage of candlestick charts is that the size and color of the real body can send out volumes of information.For example:a long white real body visually displays the bulls are in chargea long black real body signifies the bears are in control.a small real body (white or black) indicates a period in which the bulls and bears are in a “tug of war” and warns the market’s trend may be losing momentum..
Accordingly, we harness the best charting techniques of the East and West to provide you with uniquely effective trading tools.USING CANDLESTICK CHARTSA critical and powerful advantage of candlestick charts is that the size and color of the real body can send out volumes of information.For example:a long white real body visually displays the bulls are in chargea long black real body signifies the bears are in control.a small real body (white or black) indicates a period in which the bulls and bears are in a “tug of war” and warns the market’s trend may be losing momentum.
the real body is As gets smaller we ultimately wind up with a doji which is a candlestick line which has an equal open-close and thus no real body.Constructing the Candle LineDojiCandlestick charts will often provide reversal signals earlier, or not even available with traditional bar charting techniques..
As the real body gets smaller we ultimately wind up with a doji which is a candlestick line which has an equal open-close and thus no real body.Constructing the Candle LineDojiCandlestick charts will often provide reversal signals earlier, or not even available with traditional bar charting techniques.
candlestick charts is Even more valuably, are an excellent method to help you preserve your trading capital..
Even more valuably, candlestick charts are an excellent method to help you preserve your trading capital.
This benefit alone is is incredibly important in today’s volatile environment.While the real body is often considered the most important segment of the candlestick, there is also substantial information from the length and position of the shadows..
This benefit alone is incredibly important in today’s volatile environment.While the real body is often considered the most important segment of the candlestick, there is also substantial information from the length and position of the shadows.
instance, is For a tall upper shadow shows the market rejected higher prices while a long lower shadow typifies a market that has tested and rejected lower prices.Let’s look at an example of how a candlestick chart can help you avoid a potentially losing trade.Exhibit 1 (below) is a bar chart..
For instance, a tall upper shadow shows the market rejected higher prices while a long lower shadow typifies a market that has tested and rejected lower prices.Let’s look at an example of how a candlestick chart can help you avoid a potentially losing trade.Exhibit 1 (below) is a bar chart.
area of Exhibit 1, is In the circled the stock looks strong since it is making consecutively higher closes..
In the circled area of Exhibit 1, the stock looks strong since it is making consecutively higher closes.
this aspect, is Based on it looks like a stock to buy.What is this bar chart saying?Let’s now look at the circled area on the candlestick chart in Exhibit 2 (below)..
Based on this aspect, it looks like a stock to buy.What is this bar chart saying?Let’s now look at the circled area on the candlestick chart in Exhibit 2 (below).
the different perspective is Note we get with the candlestick chart than with the bar chart..
Note the different perspective we get with the candlestick chart than with the bar chart.
the candlestick chart, is On in the same circled area, there are a series of small real bodies which the Japanese nickname spinning tops..
On the candlestick chart, in the same circled area, there are a series of small real bodies which the Japanese nickname spinning tops.
Small real bodies is hint that the prior trend (i.e. the rally) could be losing its breath.The candlestick chart below uses the same data as Exhibit 1 (above), (remember, a candlestick chart uses the same data as a bar chart; open, high, low and close.)What is this candle chart saying?As such, while the bar chart makes it look attractive to buy, the candlestick chartproves there is indeed a reason for caution about going long..
Small real bodies hint that the prior trend (i.e. the rally) could be losing its breath.The candlestick chart below uses the same data as Exhibit 1 (above), (remember, a candlestick chart uses the same data as a bar chart; open, high, low and close.)What is this candle chart saying?As such, while the bar chart makes it look attractive to buy, the candlestick chartproves there is indeed a reason for caution about going long.
The small real bodies is illustrate the bulls are losing force..
The small real bodies illustrate the bulls are losing force.
the candlestick chart, is Thus, by using a swing trader, day trader or even if you do active investing would likely not buy in the circled area..
Thus, by using the candlestick chart, a swing trader, day trader or even if you do active investing would likely not buy in the circled area.
The result — is avoiding a losing trade.technical analysis CandlesticksHow to understand about technical analysis: Learn about technical analysisIn finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which,being an aspect of active management, stands in contradiction to much of modern portfolio theory.The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable..
The result — avoiding a losing trade.technical analysis CandlesticksHow to understand about technical analysis: Learn about technical analysisIn finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which,being an aspect of active management, stands in contradiction to much of modern portfolio theory.The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable.