Nison Candlestick Summit – Day 2 The Candlestick Summit Reaching the top levels of Nison candlesticks- Day 2 Small real body inside an unusually long white real body. BASIC CRITERIA • Two session pattern • Market in uptrend, but trend not critical • First candle unusually long white candle • Second candle is much smaller than 1st candle (about 25% or less). • 2nd candle can be the same- or opposite color- of first candle • 2nd real body is within 1st candle’s real body PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING • Not used as resistance (unless 2nd candle is reversal signal (i.e. shooting star) • Not used for momentum trading The indications based on the tall white candle’s vitality is for the rally to continue, But next session’s gap down and then failure to resume the advance to beyond the prior session shows those who had forecast strength are wrong! The rally could now be running out of fuel. www.candlecharts.com www.candlecharts.com 1 Nison Candlestick Summit – Day 2 For FX, intraday and indexes can have the same (or within 2 pips for FX) open as prior close If the 2nd candle is a doji, the pattern is called a harami cross The more the 2nd candle gets deeply into the white candle the better the signal. Because FX, etc, black can’t get deeply into white candle, it is best to wait for bear confirmation by a lower open or close than black candle’s real body. FX Pattern In general the less the 2nd candle gets more into the white candle the more confirmation is needed. Opposite of bullish harami www.candlecharts.com Bear Harami Not Bear Harami Because these are near the highs of the prior candle would want bear candle confirmation www.candlecharts.com Confirmation important in FX www.candlecharts.com www.candlecharts.com 2 Nison Candlestick Summit – Day 2 Black candle that opens higher and then closes more than halfway into prior white real body. www.candlecharts.com BASIC CRITERIA • Two session pattern • Market in uptrend • Open of black candle higher than prior close • Black candle closes into white candle STRICT CRITERIA • Black candle closes more than 50% into white real body • Black candle opens above prior high • Tall white and black candles PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING • Highest high of both candles as resistance • Consider buying on breakout over high of pattern White candle and then gap higher keeps bulls happy. But with black candle finishing well below white candle’s close the “upward energy has cooled to the extreme” causing the bulls to become concerned and bears bolder. For FX, intraday and indexes can have the same (or within 2 pips for FX) open as prior close If the black candle doesn’t get more than ½ way into white it is called an “incomplete dark cloud cover” and it is best to wait for bear confirmation. The more the open on black candle gaps away from the prior high/close the better the pattern (for non FX). FX Pattern Opposite of piercing pattern www.candlecharts.com www.candlecharts.com 3 Nison Candlestick Summit – Day 2 Is it a valid Nison Candlestick Signal? ? ? Dark Cloud Cover defines Resistance www.candlecharts.com Dark Cloud Cover at resistance Why is this not a bullish engulfing pattern? www.candlecharts.com www.candlecharts.com 4 Nison Candlestick Summit – Day 2 Dark cloud rains pain for the bulls “Oh crap!” Think there is trouble near $410? Happy time for the bulls- new high close! www.candlecharts.com Dark Cloud Cover Dark Cloud Cover and momentum www.candlecharts.com www.candlecharts.com 5 Nison Candlestick Summit – Day 2 Dark Cloud Cover Is this telling you that there is a shift in psychology? Not dark cloud cover Chart courtesy of Genesis FT www.candlecharts.com BASIC CRITERIA • Trend not important • White candle followed by black candle that opens within white real body and closes under prior open. www.candlecharts.com BASIC CRITERIA • Trend not important • White candle followed by black candle that opens within white real body and closes under prior open. STRICT CRITERIA • Both long real bodies • 2nd candle closes under prior low • Black real body closes at, or near, its lows PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING • Highest high of both candles as resistance • Consider buying on breakout over high of pattern www.candlecharts.com The white candle means the bulls are running the show. And then the next session the market gaps lower and is not only unable to make it this lost ground, but closes under the white candle. This shows the bullish energy has been sapped out of the market resulting in very scared bulls. 6 Nison Candlestick Summit – Day 2 Since the market has to gap lower this pattern not applicable to FX. The more the market gaps down on the open and the lower the close on the black candle the more meaningful the pattern Keep in mind risk/reward since this pattern is completed after substantial move has already occurred. Opposite of Bull Sash pattern If open of black candle is same (or lower) as prior open, it is a Bearish Separating Line. www.candlecharts.com Bear Sash Bear Sash www.candlecharts.com Bear Sash Bear Sash www.candlecharts.com www.candlecharts.com 7 Nison Candlestick Summit – Day 2 Being a Market Chameleon Bear Sash Bull Sash www.candlecharts.com White candle followed by black candle that opens at (or below) prior open. Then closes under black candle open. www.candlecharts.com BASIC CRITERIA • Trend not important • White candle followed by black candle that opens at (or below) prior open. Then closes under white candle’s open. STRICT CRITERIA • Both long real bodies (rare) • Black real body closes at, or near, its lows PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING • Highest high of both candles as resistance • Consider buying on move above high of pattern www.candlecharts.com With the gap down on 2nd day the bulls sense danger. And then to make matters worse for them, the market can’t even make up for the ground lost on the opening. The tide of the market momentum has now turned down. www.candlecharts.com 8 Nison Candlestick Summit – Day 2 Easy way to remember this pattern is the opens are the about the same (or the 2nd candle open gaps away from 1st candle’s open.) Since the market has to gap lower this pattern not applicable to FX. Major challenge with this pattern is since it is completed after substantial move, could mean poor risk/reward. Opposite of Bull Separating Pattern If open of black candle is within prior white real body, it is a Bear Sash Pattern. www.candlecharts.com Bear Separating line www.candlecharts.com Bear Separating Line www.candlecharts.com www.candlecharts.com 9 Nison Candlestick Summit – Day 2 Bear Separating line www.candlecharts.com TWEEZERS TOP Two candles that have the same lows. First candle large white. www.candlecharts.com A blended candle is a way of “compressing” combinations of candle lines into as if they made one candle Source: KABUSHIKISOUBA NO TECHNICAL BUNSEKI – G.Ikutaro www.candlecharts.com 10 Nison Candlestick Summit – Day 2 How do we make a Blended Candle? close 2 = open 1 1) Use open of the first session for open of blended candle 2) Use close of the last session of pattern for close of blended candle. 3) Use highest high and lowest close of all sessions for upper and lower shadows of blended candle. think of Blended candle as a “Summary candle” of the pattern analyzed. How does this help? 1- To determine if a pattern is net bullish or bearish www.candlecharts.com 2- To compare variations of candle patterns to determine the strength of the signal Classic dark cloud cover How is this non classic dark cloud cover different and what does it mean to outlook? A falling window is resistance Most important resistance level Resistance Zone www.candlecharts.com www.candlecharts.com 11 Nison Candlestick Summit – Day 2 Importance of Windows www.candlecharts.com First candle long white, second candle small real body, and third candle is black that gets deeply into first real body. white or black FX www.candlecharts.com Candles in Context Evening Star Would you buy here? How about here? Morning Star www.candlecharts.com www.candlecharts.com 12 Nison Candlestick Summit – Day 2 Abandoned Baby Top www.candlecharts.com Falling Three Methods A series of small candles inside the range of a long black candle. The last candle is another long black. www.candlecharts.com Falling Three Methods www.candlecharts.com 13 Nison Candlestick Summit – Day 2 Falling Three Methods Why about this falling three gives you extra bearish confidence? Three consecutive black candles, each with a lower close. www.candlecharts.com Three Black Crows www.candlecharts.com www.candlecharts.com 14 Nison Candlestick Summit – Day 2 Nison Case Study 1. What are the reversal signals? 2. Where is potential support? 3. Any signals confirming support area forecasted in #2? www.candlecharts.com A- Chart Challenge 1. What are the reversal signals? 2. Where is potential support? 3. Any signals confirming support area forecasted in #2? Nison Case Study What 4 bear candle signals can you find in the box? www.candlecharts.com 15 Nison Candlestick Summit – Day 2 Candlestick Charting Strategies Candlesticks + Western Indicators Candlesticks + Trade Management East + West Confirmation Where a candle signal confirms a Western technical signal www.candlecharts.com Candles plus Bollinger Bands…… www.candlecharts.com www.candlecharts.com 16 Nison Candlestick Summit – Day 2 Crack and Snap with Volume The arrow points to a “Snap and Crack”. What does volume do to increase the likelihood of this technique working? www.candlecharts.com Nison Case Study At the arrow we see a doji. 1) What is the volume on this doji telling us about the supply/demand situation? 2) What 2 candlestick signals in August give us a clue that there was support at the doji? 3) Although the doji was holding a support area, what happened on the day of the doji that would keep the short term trend down? Based on this, what would we need to see to give bullish confirmation of that support area? www.candlecharts.com Using NCS and candles to confirm resistance Why wasn’t this window my 1st support ? www.candlecharts.com www.candlecharts.com 17 Nison Candlestick Summit – Day 2 With Nison Candle Confirmation – long put at resistance mkt @22.50 Buy 20 put @.70 5 days later mkt @21, 20 put @ .26 www.candlecharts.com Candles and the ADX: The Perfect Fit www.candlecharts.com www.candlecharts.com 18 Nison Candlestick Summit – Day 2 Stands for Average Directional Indicator Shows how strongly a market is trending Does not show direction of trend www.candlecharts.com Strong ADX with prices in up trend. Strong ADX with prices in down trend. www.candlecharts.com 1 2 www.candlecharts.com www.candlecharts.com 19 Nison Candlestick Summit – Day 2 Some technical indicators, such as moving averages, momentum trading, work better in strongly trending markets. Some technical indicators, such as oscillators, work better in non trending markets. Traders check ADX to see if the technical indicator they use is in right trend environment www.candlecharts.com Use only on daily charts – except for FX Use only for entries Lagging indicator Slow to recognize a new trend www.candlecharts.com SteveApple has recently gone from 120 to 150 and the ADX on a daily basis has not moved up. This is surprising. Comments? - Pete www.candlecharts.com www.candlecharts.com 20 Nison Candlestick Summit – Day 2 Common mistake- looking at ADX level. Slope is the key Slope=change in ADX from yesterday to today. (today’s ADX level-yesterday’s ADX level) Greater the slope, stronger the trend -.31 ADX 22.04 ADX at 20.96 Slope = 24.11-22.04 =+2.07 ADX 24.11 ADX at 20.64. What do we need to determine the slope on this day? Slope = 20.64-20.96 = -.32 www.candlecharts.com ADX:22.38 Slope = +2.08 14 Period ADX slope increasing .5 or more ADX:27.56 ADX:20.30 ADX:26.03 What is the slope? Strong uptrend? www.candlecharts.com www.candlecharts.com 21 Nison Candlestick Summit – Day 2 -.31 Minimum: 14 Period ADX slope +.25 or less ADX:18.26 ADX:18.57 Strict: 14 Period ADX slope decreasing www.candlecharts.com [email protected] www.candlecharts.com Candles and ADX - The Perfect Fit Reversal candles help pick top and bottoms. Increase % by not going against strong trends. www.candlecharts.com 22 Nison Candlestick Summit – Day 2 www.candlecharts.com Minimum: 14 Period ADX slope +.25 or less Strict: 14 Period ADX slope decreasing Do we have to measure the ADX slope on this hammer? www.candlecharts.com Minimum: 14 Period ADX slope .25 or less -.40 -.10 Strict: 14 Period ADX slope decreasing www.candlecharts.com www.candlecharts.com 23 Nison Candlestick Summit – Day 2 ADX slopes 2.24, 2.53, 2.67 Bull shadows on descent. But based on ADX which of these is more likely a turn? Why didn’t I put ADX numbers for these? www.candlecharts.com ADX : 27.98 ADX : 30.38 What candle patterns are at the dashed arrows? ADX : 31.80 What is the ADX telling us? www.candlecharts.com +.95 Minimum: 14 Period ADX slope +.25 or less -.31 ADX:18.26 ADX:18.57 Strict: 14 Period ADX slope decreasing www.candlecharts.com www.candlecharts.com 24 Nison Candlestick Summit – Day 2 Slope +.97 www.candlecharts.com FOR BEAR CANDLE REVERSAL SIGNALS • Step 1 – get candle signal • Step 2 – ADX shows uptrend easing or no trend: ADX slope increases by less than .25, and better if slope is negative ADX:42.85 and 41.02 so slope is -1.83 www.candlecharts.com FOR BULL CANDLE REVERSAL SIGNALS ADX: 1-31.97 2-32.67 3-32.48 4-32.45 5-32.53 6-30.23 • Step 1 – get candle signal 6 • Step 2 – ADX shows downtrend easing or no trend: ADX slope increases by less than .25, and better if slope is negative 1 3 2 4 5 www.candlecharts.com www.candlecharts.com 25 Nison Candlestick Summit – Day 2 What patterns were at 1 and 2? 1 What pattern was completed on last candle? On the last candle, based on ADX what is your action/why? 2 ADX Yesterday: 27.18 Today: 28.79 www.candlecharts.com What pattern was completed today? Based on ADX what is your action/why? What else would you consider? ADX Yesterday: 29.75 Today: 30.95 www.candlecharts.com What pattern was completed today? Based on ADX what is your action/why? What else would you consider? ADX Yesterday: 31.27 Today:30.94 www.candlecharts.com www.candlecharts.com 26 Nison Candlestick Summit – Day 2 1- Based on ADX which candle line would you sell? 1,2 or 3? 3- What would you do here +.80 +.20 based on ADX and prevailing technical signals (candle and non candle)? +.59 -.40 2- Based on ADX would you buy this piercing pattern? www.candlecharts.com What pattern did this complete? (hint look at the opening of both sessions) What else happened on this session that would make you nervous from the long side? www.candlecharts.com www.candlecharts.com www.candlecharts.com 27 Nison Candlestick Summit – Day 2 Candlesticks do not give price targets Pivot Highs and Lows This high is higher than the session before and after it This low is lower than the session before and after it Resistance Levels Support Levels Breakouts- long call on retracement Stalling at resistance. Looking for pullback to breakaway gap Mkt @ 428 Target 448 Buy 430 call Stop close under window www.candlecharts.com www.candlecharts.com 28 Nison Candlestick Summit – Day 2 Candles and Price Targets This doji takes on extra significance because it confirms a resistance level www.candlecharts.com Box Range www.candlecharts.com Trading Box Ranges New high- let’s buy www.candlecharts.com www.candlecharts.com 29 Nison Candlestick Summit – Day 2 www.candlecharts.com East and West- Measured Moves www.candlecharts.com Box Range www.candlecharts.com www.candlecharts.com 30 Nison Candlestick Summit – Day 2 Head and Shoulders Head Right Shoulder Left Shoulder Neckline Sell signal Head and Shoulders Top How Candles Put More $$$ in your Pocket What was candle reversal here at 150 Extra profit Reversal with Western Technique at 141 What signal did we have here at support? www.candlecharts.com TASC Interview - Jan. 24, 2003 S&P at 860 1) Once the neckline’s support is broken, it should become resistance. Head and Shoulder top 2) To get a target with the head and shoulders top we measure from the top of the head to the neckline. neckline Interview “… the heads and shoulders top on the S&P gives a target to near 775. A close over 870 would void this.” www.candlecharts.com Hammer 31 Nison Candlestick Summit – Day 2 Trading on the open www.candlecharts.com Trading on the open www.candlecharts.com Candlestick Charting Strategies Candlesticks + Western Indicators Candlesticks + Trade Management www.candlecharts.com 32 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” Candles in Context “To know where you stand is as important as candle pattern recognition.” www.candlecharts.com 33 Nison Candlestick Summit – Day 2 Misinformation can cost you $$$ ? www.candlecharts.com Candles in Context Would you buy on this hammer? www.candlecharts.com Candles in Context Not an ideal dark cloud cover, but?? www.candlecharts.com www.candlecharts.com 34 Nison Candlestick Summit – Day 2 Trading with Discipline 1. Don’t forget “candles in context” 2. If…then system The If…Then Principle: • If the market does not act as forecasted then exit the position (Protective Stops) • Initiate a position when the market justifies your potential trade (i.e. If the market breaks above resistance, then buy. • If the market does something different than before then adjust trading strategy If… then Head and Shoulders Top? www.candlecharts.com www.candlecharts.com 35 Nison Candlestick Summit – Day 2 If… then Was Head and Shoulders Top Confirmed ? www.candlecharts.com I was thinking of buying GM for a longer term investment and was willing to give up a few $ to buy on momentum. Where do you think my buy area was? When would you pull the buy limit trade? www.candlecharts.com Momentum trade Pulled buy stop www.candlecharts.com www.candlecharts.com 36 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them Protecting your Assets www.candlecharts.com 37 Nison Candlestick Summit – Day 2 Protective Stops keep you in the game! Looks promising at the white candles 1 www.candlecharts.com How Education Saves you $$$$ Hammer www.candlecharts.com Nison Case Study What would you do here and why You shorted here www.candlecharts.com www.candlecharts.com 38 Nison Candlestick Summit – Day 2 Protecting your Assets Protective Stops keep you in the game! Looks promising at the white candles 1 How Education Saves you $$$$ Hammer www.candlecharts.com 39 Nison Candlestick Summit – Day 2 Nison Case Study What would you do here and why You shorted here www.candlecharts.com Exit Strategies Protective Stops Time Stops Trailing Stops © Steve Nison’s Candlecharts.com If the market does not act as expected within about five sessions then consider exiting www.candlecharts.com 40 Nison Candlestick Summit – Day 2 Don’t Stay Around What are you doing hanging around! You’re wasting precious resources. Hammer and Bull Engulf Chart courtesy of Genesis FT www.candlecharts.com Trailing Stops As the market moves in your direction – stop is adjusted to help ride the trend. www.candlecharts.com “Golden” and “Dead” Crosses Compares two moving averages GOLDEN CROSS: shorter crosses above longer DEAD CROSS: shorter crosses under longer www.candlecharts.com www.candlecharts.com 41 Nison Candlestick Summit – Day 2 Answer: 3 and 12 day www.candlecharts.com Trailing stops - letting the profits run “I usually exit, it corrects somewhat but then continues to go in the original direction after that.” Shooting Star Falling window You sold at shooting star or falling window. A rally from a bull harami gets you nervous and you exit. But you’re still playing with the market’s money- so another option: trailing stop…. www.candlecharts.com Trailing stops - letting the profits run Shooting Star Falling window Where you got nervous www.candlecharts.com www.candlecharts.com 42 Nison Candlestick Summit – Day 2 Letting Profits Run Could take some or all profits here Shooting star Or use dead cross as your trailing stop and would thus exit here Buy and set protective stop www.candlecharts.com Trailing Stops to let profits run Now at targetDoji warns of caution. But you want to let profits run. Potential Target Buy and set protective stop www.candlecharts.com Trailing Stops to let profits run doji www.candlecharts.com www.candlecharts.com 43 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options Nison Candlesticks for Portfolio Protection How can I boost profits even when my core markets are falling? By using Nison candlesticks for pinpoint timing entering and exiting covered calls and protective puts www.nisonoptionsacademy Nison Candle strategies for portfolio protection Buy put for move to 31.50 Mkt @ 33.75 buy 32.5 put @ .80 In case of move to 31.50 Reached target but no reversal signals (worth 1.60) So ride it down to 30.50 at bull engulf put @ 2.25. www.candlecharts.com www.candlecharts.com 44 Nison Candlestick Summit – Day 2 Time decay Time decay (or time "erosion") is the decrease, of an option premium's time value due to the passage of time. The rate of this decay increases as expiration approaches. At expiration a call or put is worth only its intrinsic value, if it has any. “With long options timing is everything since time is working against you.” www.nisonoptionsacademy.com Using Nison Candle Scanner software for Options: Method 1- Set up an alert From the bear side 1. NCS finds a bearish engulfing pattern 2. Set up an alert if market gets to this resistance level Buy 7 day 210 put @ 2.58, exit harami @ 7.28 – 182% return www.nisonoptionsacademy Using Nison Candle Scanner software for Options: Method 2- Finding markets at key support or resistance areas NCS saved you from 8 days time value decay www.candlecharts.com 45 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? Stay Away from the Trade The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? 6. Prevailing trend www.candlecharts.com 46 Nison Candlestick Summit – Day 2 www.candlecharts.com Prevailing Trend 20 day m.a over 50 day m.a and both sloping up 1) Connect to data feed 2) Set up and save Western template chart with your favorite indicators 3) Set up and save NCS market analyzer with row filter NCS all off NCS bull NCS bear 4) Determine trend of overall market 5) Have both market analyzer and western template chart open side by side 6) Based on trend of overall market using NCS on market analyzer to scan for bull or bear signals. 7) Based on scan put that market into Western chart template 8) Analyze to determine if good trade or not www.candlecharts.com 47 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? 6. Prevailing trend 7. Let the market tell you what to do Adapting The low of the bullish engulfing pattern as support. Once hammer is formed (at the arrow) we then adjust our support www.candlecharts.com The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? 6. Prevailing trend 7. Let the market tell you what to do 8. Indicators – the more the better www.candlecharts.com 48 Nison Candlestick Summit – Day 2 The Multiplier Effect Where a Nison candle signal confirms another indicator Nison Case Study Two hammers picked up with NCS software at small arrows and boxes (Note: only “hammer” was turned on in NCS) d e a 1) Why is the line at the big arrow at b not a hammer? 2) Even though the candle detailed above is not a hammer, what bullish signs are there ala’ shadows and real bodies at a,b and c telling us? f 3) What warns us of trouble at about d,e and f? 4) Would you buy at either of the two valid hammers? Why or why not? c b www.candlecharts.com The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? 6. Prevailing trend 7. Let the market tell you what to do 8. Indicators – the more the better 9. Never trade in the belief the market is wrong www.candlecharts.com 49 Nison Candlestick Summit – Day 2 The 10 rules of Disciplined Trading and Investing 1. Don’t forget “candles in context” 2. If…then system 3. Stops – always use them 4. Consider options 5. Is any news expected? 6. Prevailing trend 7. Let the market tell you what to do 8. Indicators – the more the better 9. Never trade in the belief the market is wrong 10. Examine risk-reward Always Check Risk – Reward 1. What is your price risk? 2. What is your target? Do you have a good risk-reward? www.candlecharts.com Risk/Reward www.candlecharts.com www.candlecharts.com 50 Nison Candlestick Summit – Day 2 Which is a better sale? Part 1 Scenario 1 Scenario 2 Which is a better sale?- Part 2 Scenario 1 Scenario 2 Which is a better sale? Part 31 Scenario 1 www.candlecharts.com Scenario 2 51 Nison Candlestick Summit – Day 2 Which is a Better trading signal? www.candlecharts.com Risk/Reward Dark Cloud Cover Bearish Engulfing Pattern www.candlecharts.com Nison Case Study Tell me about this signal re: candle signal, western signal (hint- look at recent lows). Would you go long on this signal? Why or why not? www.candlecharts.com www.candlecharts.com 52 Nison Candlestick Summit – Day 2 What would you do and why? Nison candlesticks for option strategies Bull engulf at support - poor risk/reward but can do this trade with a special option strategy www.nisonoptionsacademy Trading with Discipline Don’t forget “candles in context” If…then system Stops – always use them Consider options Is any news expected? Prevailing trend Let the market tell you what to do Indicators – the more the better Never trade in the belief the market is wrong Examine risk-reward www.candlecharts.com 53 Nison Candlestick Summit – Day 2 Trading Journal Date, market, $ amount committed Why did you do the trade Entry Price Risk Initial Target Exit Price Analyze Trade Print out (or cut and paste) chart and make notes What did you do right/wrong Goal: Keeping emotions out of your trading Trading Journal - Setting up the Trade Entry Price Risk Initial Target Why did you do the trade? www.candlecharts.com Trading Journal - Analyzing the Trade Entry Price Risk Initial Target Why did you do the trade? Exit Price Analyze the trade www.candlecharts.com www.candlecharts.com 54 Nison Candlestick Summit – Day 2 Trading Journal - Setting up the Trade Entry Price Risk Initial Target Why did you do the trade? Support from a few months ago www.candlecharts.com Trading Journal - Analyzing the Trade Entry Price Risk Initial Target Why did you do the trade Exit Price? Analyze the trade www.candlecharts.com Trading Journal - Analyzing the Trade Entry Price Risk Initial Target Why did you do the trade Exit Price Analyze the trade www.candlecharts.com www.candlecharts.com 55 Nison Candlestick Summit – Day 2 Steve recommends: What would you do and why? What would you do? www.candlecharts.com Part 1 Part 2 56 Nison Candlestick Summit – Day 2 What would you do? Part 3 What would you do? Part 4 What would you do? Part 5 www.candlecharts.com 57 Nison Candlestick Summit – Day 2 Putting it all Together Trading Checklist Use NCS to find and confirm a valid Nison candlestick signal candle confirm Western signal (i.e. ADX, support/resistance, volume, or any of your favorites) Check longer term trend Is any news coming out? Determine risk/reward (remember many of the candle signals can be used as a protective stop) Monitor trade (i.e. time or trailing stops, change in technical picture, etc) Does www.candlecharts.com 58
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