key candlestick strategies for profitable fx trades … 4 frontline fx: key candlestick strategies...
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Frontline FX: Key Candlestick Strategies for Profitable FX Trades
With
Steve Nison, CMTPresident: Candlecharts.com
Western Indicators and Trade Management Essentials and Beyond for FX
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
sleeping
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Deep Question 1
Why does a psychic hotline ask for your credit card number? Shouldn’t they already know it?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
1. What bearish signal are these?2. Which are more likely a top reversal and why
3)What patterns are these? 4) Which one would you be more confident of a rally and why?
FX Chart Challenge
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Candlestick Charting
Techniques
Candlesticks +Western Indicators
Candlesticks + Trade Management
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East + West Confirmation
Where a candlesignal confirms aWestern technical
signal
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Foundation of East + West for FX:
Candles and Trend lines
Foundation of East + West for FX:
Candles and Trend lines
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Angled and Horizontal Trend lines
Candlestick confirmation of trend lines
Change Polarity Crack/Snap Falling Off the Roof
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Trend Lines
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East + West = Success
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Trend Lines
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Using candles to enter vs. exit
Doji
Hammer
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East + West = Higher Confidence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East + West = Higher Confidence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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THINK THE £ HAD TROUBLE NEAR 1.7040?
If I had only seen this!
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Change of Polarity
Congratulations – you bought at support!
Congratulations?you bought at
support?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
www.nisonforexacademy.com© Steve Nison’s Candlecharts.com
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Change of Polarity
SupportSupport
Resistance
Resistance
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Change of Polarity
Support zonebecomes …
Resistance
Chart courtesy of Genesis FT
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East and West = Increased Confidence
Doji
Prior support becomes new resistance
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Candles in context
Hammer, but ..
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Candles in Context
Is the market at support?Are there any candle reversal signals?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bear Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bear Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bullish Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bullish Change of Polarity
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Snap
Crack
Target
StopBuy
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Crack and Snap
target
Chart courtesy of Genesis FT
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Snap and Crack
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Snap and Crack
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Sell
Target
Stop
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Falling Off the Roof
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
What signals were there at 1‐4?
12 3
4
FX Chart Challenge
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
FX Chart Challenge
Would you buy on this hammer? Why or why not?If not, when would you buy?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Module 2
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Foundation of East + West for FX:
Candlesticks and Bollinger Bands
Foundation of East + West for FX:
Candlesticks and Bollinger Bands
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bollinger Bands
•Developed by John Bollinger
•Two trading bands are placed around a
moving average (typically a 20-day moving
average)
•Bands are placed (typically) 2 standard
deviations above and below moving average
•Touch of upper band: overbought
•Touch of lower band: oversold
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East and ……
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East and West (Bollinger Bands)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bollinger Bands
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bollinger Bands
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bollinger Bands
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East and West = Higher Confidence
Who’s in charge here?
Who’s in charge here?
How about now?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Bollinger Bands
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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What this knowledge can do
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Reversion to the Mean
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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BB – All Time Frames (Weekly)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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BB – All Time Frames (Daily)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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BB – All Time Frames (15 Minute)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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BB – The Chart - little Volatility
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BB – The Chart - High Volatility
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BB Squeeze
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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BB’s for Targets
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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BB’s – Riding The Band
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Shooting Star Bearish engulfing pattern
Both patterns confirmed upper Bollinger Band
Dual Bearish Candle Signs & Divergence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Foundation of East + West for FX:
Candlesticks and Oscillators
Foundation of East + West for FX:
Candlesticks and Oscillators
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Oscillators Oscillators
Objective
Separate from price
Best in lateral markets
Includes stochastics, MACD,
RSI, price oscillator, etc.
Objective
Separate from price
Best in lateral markets
Includes stochastics, MACD,
RSI, price oscillator, etc.
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
ApplicationsApplications
Momentum: force of trend
Overbought/Oversold:
Momentum: force of trend
Overbought/Oversold:
Divergence
too far too fast?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Positive Divergence Negative Divergence
Price
Oscillator
2
1 2
1
Oscillator
Price
12
1 2
Divergence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
• Compares advances to declines
• Most common 9 and 14 period
• Uses : Divergence, Extremes (70% and 30%), Trend lines
• Failure Swings
Relative Strength Index (RSI)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Relative Strength Index
Formula: = 100 – (100/1+RS)
Where RS = average of N day’s up closesaverage of N day’s down closes
Example: If total up points (close to close) over 14 days was $28 and total down points for 14 days was $14:Average up = 28/14=$2 and Average down 14/14=$1.
So, RS= 2/1=2 and RSI = 100 – (100/1+2)=100-33.33 = 66.67%
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Hammer and positive divergence
East & West
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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RSI
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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RSI
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Candles in Context of Overbought/Oversold
At which doji is the market more vulnerable?
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Candles and Oscillators
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Convergence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
Concept – closes cluster to highs
Most common – 9 and 14 period
Two lines - %K and %D
Stochastics
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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a) %K – close compared to price range
b)%D – 3 period average of %K
(a) and (b) - Fast Stochastics
3 period average of (a) and (b) = Slow Stochastics
Stochastics
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
StochasticsFormula for %K:
today’s close-lowest close in N periodshighest high in N periods-lowest low in N periods
100 *
Example: for 14 day %K, today’s close is 41, if highest high was 46 and lowest low was 41, for %K we have:%K = 41-38/46-38 *100= 37.5%
This means today’s close was 37.5% relative to the entire range of last 14 sessions.
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
a) %K – close compared to price range
b)%D – 3 period average of %K
(a) and (b) = Fast Stochastics
Stochastics
Slow Stochastics = The %D in Fast Stochastics becomes %K in Slow Stochastics, and %D in slow is a 3 period ma of Fast %D.
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Faster %Kline crosses % D line
Overboughtand Oversold
Using Stochastics
Bullish and BearishDivergence
Stochastics
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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East and West
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Stochastic
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Stochastic
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Stochastic
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Stochastic
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
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Scenario 1 – Take a short position on the close of the bearish engulfing pattern at 1.3421
Scenario 2 – Take a short position on the close just two after the Stochastics crossover is clear at 1.3419
Result: The hesitation waiting for the crossover makes a big difference on a 10 minute chart eating into your profits
Nison Candlestick strategies for greater profits
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
Western indicators and Trade Management Essentials and Beyond for FX
MACD line crosses Signal line
MACD Line – spread of two exponential moving averages
Signal Line – Exponential moving average of MACD line
Moving Average Convergence/Divergence
(MACD)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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MACD lines Crosses Signal line
Overboughtand Oversold
Using the MACD
Bullish and BearishDivergence
Moving Average Convergence/Divergence
(MACD)
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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MACD
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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East and West = Higher Confidence
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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MACD
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Candles and early reversals
doji
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Scenario 1 – Short 1.2803 after the Bearish engulfing pattern
Scenario 2 – Short after the MACD moving average crossover at 1.2729
Result: An extra 74 pips of profit!
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Short term from longer term m.a.
Overbought/oversold, divergence
Dual Moving Averagesa.k.a Price Oscillator
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Price OscillatorFormula:
short term moving average – long term moving average
Example: 10 day moving average = $23 30 day moving average = $31
Price oscillator = $23-$31= -8
If 10 and 30 day moving averages are the same Price Oscillator = 0
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Price Oscillator
Close compared to 5 day MA
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Foundation of East + West for FX:
Candlesticks and Retracements
Foundation of East + West for FX:
Candlesticks and Retracements
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Fibonacci Retracements
(B)
(A)
50%
38.2%
61.8%
$100
$200
($150)
($162)
($138)
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Fib. Retracements with Candles
Chart courtesy of Genesis FT
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Fib. Retracements
HammerChart courtesy of Genesis FT
Bull Engulf near 62%
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Candles and Fibs
What are the three candle reversal signals?
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50% retracement
East + West
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Fib Retracements
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Fib Retracements
Held
Failed so next support is
Failed so next support is
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Fib Retracements
Failed so next target is
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Foundation of East + West for FX:
Candlesticks and Moving Averages
Foundation of East + West for FX:
Candlesticks and Moving Averages
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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East + West Confirmation
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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Simple Moving Average
Formula: Add price (usually close) for N periods/ N periods
Example: 20 day moving average of close: add total of last 20 day’s closing prices and divide by 20.
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Example of 5 day m.a.Date Closing Price Last 5 days/5= 5 day m.a.
Sept. 24 $20Sept. 25 $23Sept. 26 $21Sept. 27 $21Sept. 28 $22 Sept. 24-28
107/5=$21.40Sept. 29 $29 Sept.25-29
116/5=$23.20Sept. 30 $32 Sept. 26-30
125/5=$25
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Moving Averages
Support / ResistanceTrend Indicator
price
Moving average
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Moving Averages with Candle Support
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Moving Averages with Candle Support
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Moving Average Support
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Moving Averages
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Moving average resistance
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East + West for increased confidence
Candles and trend lines
Change of Polarity
Crack and Snap
Falling off the roof
Candles and Bollinger Bands
Candles with Oscillators
Candles with Fib
Candles with Moving Averages
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•Module 3
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WheneverStevetravelstoEuropebuytheUSDollar!
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Steve in SpainSteve in Ireland
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Waiting for Steve at Dublin Airport
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Candlestick Charting
Techniques
Candlesticks +Western Indicators
Candlesticks + Trade Management
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Forex Trading Success
The D.I.S.C.I.P.L.I.N.E.
System
Your Blueprint for Forex Trading Success
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Don't ever forget risk- rewardIf…Then systemStops: Always use Candles in ContextImportance of TrendPace trades to market environmentLet go of emotions Indicators: The more the betterNever trade without an eye to newsExamine how market acts at support/resistance
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Scenario 1 Scenario 2
Now let’s look at these in context!
Which is a better buy?
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Same pattern: but how different the strategy!
Scenario 1
Scenario 2
Now let’s look at these in context!
Enter
Risk
Target
Risk
Enter
Target
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Steve’s Most Important Trading Rule
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Don't ever forget risk- reward
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Acandlesignal– evenifitconfirmsotherindicators– isnotenoughofareasonforatrade.Youmustalwaysconsiderrisk/reward
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Identifying candle patterns has not been a problem for me, but learning how to use them to enter and exit the market and to avoid certain entry signals because of a poor risk/reward was probably the greatest benefit … For instance, on 6/13/07 I noticed a hammer on the daily chart of the eur/usd pair. I entered the following day at 1.3282 with a stop at 1.3249. ‐‐Max O.
YOU HAVE A CANDLE SIGNAL – NOW WHAT ?
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Is this a good trade candidate?
With education you just saved yourself from a over a 100 pip lose!
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Is this a good R/R trade?
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Risk/Reward
Why I went long:
1) Bullish engulfing at support
2) Other spinning tops confirming support
3) Trend line breakout of price
Was this a good trade that just didn't work out or did I make a mistake in judgment that I can't see?
Thank you,Gary B
Why I went long:
1) Bullish engulfing at support
2) Other spinning tops confirming support
3) Trend line breakout of price
Was this a good trade that just didn't work out or did I make a mistake in judgment that I can't see?
Thank you,Gary B
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Candles in Context
Prior resistance converts to new support
What are 2 reasons not to short on this shooting star?
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Hammer confirms support/but what about r/r?
Chart courtesy of Genesis FT
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Hammer and risk/reward
If you buy on the hammer’s close ask “What is my stop and what is my target”? Only if good risk/reward is a trade warranted
Targets obtained
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Candles in Context
Chart courtesy of Genesis FTMorning starbut ???
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Candles in Context
Why not sell at this doji?
Chart courtesy of Genesis FT
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How money management helps save money
Bullish Engulf Pattern but what about profit potential?
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Chart courtesy of Genesis FT
FX Chart Challenge- what would do here?
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FX Chart Challenge
1) What candle signal and western signals are here 2) Would you do the trade based on the candle signal?
Why or why not?3) Would you do the trade based on the western
signal? Why or why not?
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If..Then system
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TheIf…ThenRules:• If themarketdoesnotactasforecastedthen exittheposition
• Initiateapositionwhenthemarketjustifiesyourpotentialtrade(i.e.If themarketbreaksaboveresistance,then buy.
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Steve Nison’s Candlecharts.com Highlights
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Don’t Stay Around
Hammer and Bull Engulf
Target
What are you doing hanging around! You’re wasting precious resources.
Chart courtesy of Genesis FT
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What is the #1 mistake made by FX traders?
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The answer is:
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How can we correct this?
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By Using Protective Stops!
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“I KNEW WE SHOULD HAVE CHECKED NISON'S TRADING TRIAD SUCCESS SYSTEM FIRST!”“I knew we should have set protective stops”
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Stops: Always use
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Frontline FX: Key Candlestick Strategies for Profitable FX Trades
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The race is not always to the swiftest, but to those who keep running.
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Protective Stops
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Why Use Protective Stops
Out
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Stops
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STOPS TO PRESERVE CAPITAL
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Importance of stops
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Importance of Protective Stops
Gravestone doji
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Importance of stops
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Stops
Where is the stop?
1 of 2
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And what happened after 2 of 2
What if it went to here? Would you still want to be short?
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Setting stops using risk/reward
Buy @ 1.205Target=1.246Profit potential=39 pips
Chart courtesy of Genesis FT
What should our intraday stop be if we want a 2 to 1 reward/risk?
A‐ 20 pips or 1.185
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Setting Stops w/o waiting for close
Shooting star confirms resistance
Target
Shooting star close = 121.92Target = 121.64Potential reward 28 pips
For 2:1 reward risk = risk 14 pipsShorted 121.92 + 14 pips =Intraday stop 122.06
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• Module 4
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Candles in Context
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Candles in Context
Chart courtesy of Genesis FT
Morning starbut ???
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Candles in Context – Moving Averages
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Candles in Context
Prior resistance converts to new support
What are 2 reasons not to short on this shooting star?
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How NOT to use candlesticks
Oh my goodness! The market rallied after the shooting star!
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Importance of Trend
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If you incorrectly shorted here thinking it was a bearish engulfing pattern. You could have lost hundreds of pips
The Importance of Correct Knowledge
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Candles and Trend
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Pace trades to market environment
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Market Chameleon:As market environment changes we adapt our market outlook and stance
Nison Trading Principle
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© Steve Nison’s Candlecharts.com
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Non Emotional Trading
Chart courtesy of Genesis FT
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Adapting to the Market
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Being a Market Chameleon 1 of 3
Target
Stop
Short
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TargetAnything happening to change your outlook?
Being a Market Chameleon 2 of 3
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Being a Market Chameleon 3 of 3
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Adapting to the market
Initial target
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Being Flexible
Closed underbull engulf support , but…
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Adapting to the Market 1 of 4
What is this pattern?
What is potential 1st support?
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1) What is potential 1st support?2) Any bull candle signals?
Adapting to the Market 2 of 4
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How about here?
potential target
Adapting to the Market 3 of 4
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Adapting to the Market 4 of 4
potential target
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Speed is the Essence of Successful Trading
Resistance zone
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Let go of emotions
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© Steve Nison’s Candlecharts.com
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Non Emotional Trading
Chart courtesy of Genesis FT
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Anchoring to a position
© Steve Nison’s Candlecharts.com
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Long Lower (Bullish) Shadows
Although this market is descending, the long lower shadows lessens some of the negative outlook
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Indicators: The more the better
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The Multiplier Effect
Where a Nison candle signal confirms another indicator
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If a candle signal does not confirm another signal then use candle signal to offset a trade
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A candle signal confirming another signal is a necessary condition (but not sufficient) for a new trade
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The more the better
Chart courtesy of Genesis FT
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Confluence
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Candle Confirmation
Is the market at resistance? Are there any signs bulls’ losing force?
Is the market at resistance? Are there any signs bulls’ losing force?
doji
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Never trade without knowing about news
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Stay Away from the Trade
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© Steve Nison’s Candlecharts.com
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Examine how market acts at support or resistance
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What are the best times of the trading session to trading based on support/resistance?
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Reversals
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London / Tokyo: 3:00 am — 4:00am
New York and London: 8:00 am — 12:00 noon
Sydney / Tokyo: 7:00 pm — 2:00 am
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Yes-See if there is
of Support or Resistance
Is the candle signal showing a diminution of
force at support or resistance area?
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© Steve Nison’s Candlecharts.com
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Question 1‐ Is the market at support or resistance?
Question 2‐ Are there any reversal candles?
Question 1‐ Is the market at support or resistance?
Question 2‐ Are there any reversal candles?
Two simple questionsTwo simple questions
Candlestick Confirmation
1
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Scenario 1
Scenario 2
Candlestick Confirmation
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Using candlestick confirmation
Is the market at resistance?
Are there any reversal signals?
1 of 3
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Is the market at resistance?
Are there any reversal signals?
2 of 3Using candlestick confirmation
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3 of 3Using candlestick confirmation
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Nison Candles for Entry and Exits
What pattern is this?
At resistance‐ but any bear signals yet?
How about now?
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Candle Confirmation
Support zone
At support,What is the candlesignal showing?
Chart courtesy of Genesis FT
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Candle Confirmation
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Candlestick confirmation
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Reading the Market’s Message with the Light of the Candles
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How Education Saves You Big $$$
Major resistance 2.00‐2.01
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Long term resistance zone
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Long term resistance zone
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1
2
3 5
6
7
FX Chart Challenge –Bringing it all together
4
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A‐What candle signal is at 1 and what would you do if flat? If long?B‐What two patterns are completed at 2?C‐What signal is at 3?D‐What pattern is at 4 and what would the target be?E‐What pattern is at 5 and would you buy on that pattern? Why or why not?F‐What pattern is at 6 and would you buy on that pattern? Why or why not?G‐ At 7 with the market at support would you buy? Why or why not?
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The Rules of DISCIPLINE trading
Risk/Reward
If. Then trading concept
Vital importance of stops
Candles in context of overall market
Adapting to the market
Multiplier Effect
News Building confidence to whether
support/resistance will hold
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Learning is the gate-not the house.You first have to get through the gate to get to the house.
Miyamoto MusashiFamous 17th Century Samurai
© Steve Nison’s Candlecharts.com
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Frontline Forex Intensive
360° Candlestick Analysis for FX™
Setting up and using a trading journal
Strict vs. basic candlestick definitions
White/black real body progression in order of strength
Price confirmation
Momentum trading
The blended candle line
Steve’s favorite Western indicator and how to use it correctly
Letting your profits run with trailing stops
Bringing it all together with your 6 Step Trading Checklist
Special Bonus session: Using Intraday candle charts for day and swing trading
Steve’s “Blast Off” and Paul’s “Bouncing Ball” secret trading strategies