Steve Nison, CMT President: Candlecharts.Com

With Steve Nison, CMT President: Candlecharts.com

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Candlesticks + Trade Management

ANATOMY OF THE CANDLESTICK LINE

high Shadow close open

Real Body

open close low Real Bodies / Shadows Foundation of East + West: Nison Candlessticks and Trend Lines  Horizontal Trend Line  Change Polarity  Crack/Snap  Falling Off the Roof

Who’s in control? Who’s in control? Scenario 1

Scenario 2

www.candlecharts.com Candles and Trend lines

www.candlecharts.com How Education Saves You Big $$$

Major resistance 2.00-2.01

www.candlecharts.com How Education Saves You Big $$$

Long term resistance zone

www.candlecharts.com How Education Saves You Big $$$

Long term resistance zone

www.candlecharts.com Reading the Market’s Message with the Light of the Candles

www.candlecharts.com www.candlecharts.com Resistance Resistance

Support Support

www.candlecharts.com Trading Ultra Shorts Support or resistance lines using longer term charts (slide 1 of 2)

Long Term Chart

Long term support once broken becomes…. New resistance And adding them to a Shorter Term Chart (slide 2 of 2)

New resistance

Daily Chart Change of Polarity

www.candlecharts.com Don’t look through a well!

1 3

Why would we trade differently with Piercing Patterns 4 and 5, compared to Piercing Patterns 1,2 and 3?

Hint: “Change of Polarity” 4

www.candlecharts.com Target

Snap Buy Crack Stop

www.candlecharts.com Crack and Snap

www.candlecharts.com Stop

Sell

Target

www.candlecharts.com Falling off the Roof

www.candlecharts.com www.candlecharts.com East and West: 1 of 3

www.candlecharts.com East and West: 2 of 3

www.candlecharts.com East and West: 3 of 3

www.candlecharts.com Foundation of East + West: Nison Candlesticks and Volume Candles and Volume

And then! Light volume breakout

www.candlecharts.com Candles and Volume

Higher volume on white candle compared to black on this bullish engulfing pattern magnifies the likelihood of a reversal

www.candlecharts.com Volume Confirming the Candle Signal

www.candlecharts.com Candles And Volume: High Volume Doji

www.candlecharts.com Crack and Snap with Volume

www.candlecharts.com Foundation of East + West: Nison Candlesticks and Bollinger Bands Candles and Bollinger Bands

www.candlecharts.com Candles and Bollinger Bands Doji in context

www.candlecharts.com East and West = Higher Confidence

Who’s in charge Who’s in here? charge here? How about now?

www.candlecharts.com Foundation of East + West: Nison Candlesticks and Oscillators Oscillators

www.candlecharts.com Oscillators

Objective Derived from price- plotted separately Includes Stochastics, MACD, RSI, etc. Best in lateral markets Overbought/Oversold Divergence

www.candlecharts.com Divergence

Positive Divergence Negative Divergence

2 1 1 2 Price Price

1 2

2 1

Oscillator Oscillator

www.candlecharts.com Stochastics

Concept – closes cluster to highs Most common – 9 and 14 period Two lines - %K and %D

www.candlecharts.com Stochastics

Using Stochastics

Faster %K Bullish and line crosses Bearish % D line from Divergence overextended levels

www.candlecharts.com Candles and Negative Divergence

www.candlecharts.com Candles and Stochastics Cross

www.candlecharts.com Relative Strength Index (RSI)

• Compares advances to declines • Most common 9 and 14 period • Uses : Divergence, Extremes (70% and 30%)

www.candlecharts.com Candles and Positive Divergence

www.candlecharts.com Moving Average Convergence/Divergence (MACD)

MACD line and Signal line

MACD Line – spread of two exponential moving averages

Signal Line – Exponential moving average of MACD line

www.candlecharts.com Moving Average Convergence/Divergence (MACD)

Using the MACD

MACD lines Overbought Bullish and Crosses and Bearish Signal line Oversold Divergence

www.candlecharts.com MACD Cross: Candles for Early Reversals

doji

www.candlecharts.com Head and ShouldersShouldersHead

Head Right Left Shoulder Shoulder

Neckline Sell signal

Head and Shoulders Top Three Buddha Pattern Spotting the Early Reversals

H&S neckline

Evening star variation

Exited my stocks here How Education helps MAKE you money

Entered the market here

Morning star variation How it all comes together – The highs in the NASAQ

2 3 5

1- Rising Resistance Line 2- Shooting Star 3- Falling Window 4- Bearish Divergence 5- High-Wave Candle 4 What we learned:learned:What

 Importance of East + West Using Horizontal Trendlines for:  Reading Candle Signal at Trendline  Change of Polarity  Falling off the Roof  Candles and Volume  Candles and Bollinger Bands  Candles and Oscillators  Candle and Price Patterns  How Nison candles can be used for retirement portfolio

www.candlecharts.com “Step after step the ladder is ascended” www.nisonspecial.com/reignited Vol 1 and 2 take you from beginner to Intermediate level. If you would like the Takes you from complete MEGA intermediate to bundle contact [email protected] expert level