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Steve Nison’s Quick Start Guide to Correctly Using Candlesticks

© candlecharts.com 1

The very first to reveal candlesticks to the Westernworld.

Author of three books on candlestick charting translatedinto 12 languages.

30 years real world experience with candlesticks

His work is the foundation of all candlestick education inthe Western world.

Advisor to top institutional firms.

Spoke at the World Bank and Federal Reserve.

Steve Nison, CMTPresident and Founder: Candlecharts.comMember - Traders Hall of Fame



www.candlecharts.com



NY

Spain

London

Canada





open close

open

RealBody

high

low

Real Bodies / Shadows Doji

ANATOMY OF THE CANDLESTICK LINE

close

Shadow



session open high low close

1 23 26 21 25

2 26 28 23 27

3 23 27 22 22

4 25 28 22 25

5 27 27 25 25

Drawing Candle Lines

21

22

23

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25

26

27

28

1 2 3 4 5




21

22

23

24

25

26

27

28session open high low close

1 23 26 21 25

2 26 28 23 27

3 23 27 22 22

4 25 28 22 25

5 27 27 25 25

1 2 3 4 5

Drawing Candle Lines





Where open and close are the same(or nearly the same)



Candles give 2x the information as a bar chart

Who is in charge atthe green arrow sessions?

Who is inchargehere?





What is one of the best ways to make money?

Those poor tradersand investors whogot fooled intobuying here lost atleast $30/share



I was watching mad money(Jim Cramer) he spoke abouta stock he liked. So I checkedit out with a candle chart in aformed a doji. So I savedmoney and want to thank youfor that. --Joey A.

I was watching mad money(Jim Cramer) he spoke abouta stock he liked. So I checkedit out with a candle chart in aformed a doji. So I savedmoney and want to thank youfor that. --Joey A.

Saved at least18%by NOTbuying here

One of the best ways to make money is ...?





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

Long lower (bullish) shadows



Black or white candle with long lowershadow (2x or more) compared to realbody.




Scenario 1 – buy at candle signal@ 395

Exit at doji market @ 447Profit: $52/share

Scenario 2 – buy based on MACD@ 418Exit at doji @ 447Profit: $29/share

Result: Nison candlesticksgenerated an extra$23/share profit. So if youpurchased just 100 sharesthat means $2,300!

Nison Candlestick strategies for greater profits





Nison Power Concept



Is it a valid Nison candle?

Not hammers!




Candlesticks for entering a new Position

Entered at 62, stop 60.99

target



Evolution of Charts:The 1st Dimension

Line chart




Evolution of Charts:The 2ND Dimension

Bar chart




Evolution of Charts:The 3rd Dimension

candlestick chart





Black or white candle with long uppershadow (2x or more) compared to real body.



THINK THIS MARKET HAD TROUBLE NEAR 1.7040?

If I had only seen this!





Gravestone Doji




Black real body wraps around priorsession’s white real body or a doji.

White real body that wraps around priorsession’s black real body or a doji.

BULLISH BEARISH




Picking the Early reversals




Importance of the Correct Education

I recently purchased a technicalanalysis package from a “WELLKNOWN” technical analysis guru. Hemade several references to candlestickpatterns, and each references that hemade was absolutely wrong! …Duringa strong uptrend, he called a largewhite real body after a small black realbody a bullish engulfing pattern. If Ihadn’t bought and studied youreducation , I would never would haveknown that and would have assumedthat he was right. And I could have losta lot of money! – Carl




Look Out Below!




Bearish Engulfing as resistance




Same as a gap in Western technicals. Thecurrent session’s low is higher than theprior session’s high.




Same as a gap in Western technicals. Thecurrent session’s high is under the priorsession’s low.




Small Window

2 cents




Falling Window



“I am almost 62 … I am certainthat the financial part of ourretirement will be well secured andearlier than we had thought.Thank you Steve Nison!”

– Tom B.



Nison Candles for Longer term investing

Entered themarket here



Leverage



Falling window at$700 confirms a top.$700 put @ $25

Bearish movingaverage dead cross at$650. $700 put @$58

Using options

Result: an extra$3300 in yourpocket on oneoptions contract!

Candles for Higher Profits




The Multiplier Effect

Where a Nison candle signal confirms another indicator



Bullish Engulfing Pattern at Support




How NOT to use candlesticks

Oh my goodness! Themarket rallied after theshooting star!





1. What are the reversal signals?

2. Where is potential support?

3. Any signals confirmingsupport area forecasted in #2?

Nison Chart Challenge




Nison Chart Challenge

4

March

11 18 25 1

April

8 15 22 29

May

6 13 20 28 3

June

38.5

39.0

39.5

40.0

40.5

41.0

41.5

42.0

42.5

43.0

43.5

44.0

44.5FED DEPT STRS

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

reasons for caution?



Learning is the gate-not the house.You first have to getthrough the gateto get to the house.

Miyamoto MusashiFamous 17th Century Samurai



From our educationto Your Success

We highly recommend the Express Class• Go to candlecharts.com/express class• Use secret coupon code “nextstep” to get $50 off• Enter the code at the check out page

NOTE: this offer ends in a few days

And always remember to check out the resources atcandlechartsacademy.com

steve nison’s quick start guide to correctly using ...start... · steve nison’s quick start...

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