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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Founder and President: Candlecharts.com
Candlestick Charting Techniques Steve Nison’s
Western Charting Tools
Trading Triad
Success
System
Trade Management
1
www.candlecharts.com
“If you want to see farther,
you have to go higher”
2
For free continuing education and exclusive support for this video go to www.nisonu.com
Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success 1
Candlestick Charts
• Quickly read the market’s message
k ’
• “Safety First” Trading • Early reversals 3
www.candlecharts.com
Reading the Market’s Message – Quickly and Accurately
Looks good
Bear Sterns
collapse
4
www.candlecharts.com
Reading the Market’s Message – Quickly and Accurately
Looks good?
www.candlecharts.com
5
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Reading the Market’s Message – Quickly and Accurately
Looks good?
www.candlecharts.com
6
Reading the Psychology of the market
Think the $ had trouble in this area?
Bear shadows, evening star, bearish engulfing patterns, shooting star…..
www.candlecharts.com
7
8
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Negative Selection
Good buy?
9
www.candlecharts.com
What is one of the best ways to make money?
Those poor traders
who got fooled into
buying here.
10
Owning the Knowledge
Let see what the
candles tell us about
supply/demand
When prices get down
near $62.00-61.50?
www.candlecharts.com
11
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Owning the Knowledge
Buying at hammer near $62.00
Target near $63.70 (resistance)
12
www.candlecharts.com
Get into a new trend before other trend before other
traders see it
13
Reading the Market’s Message – Quickly and Accurately
Bear Stearns
Collapse
14
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success “Combinations of bullish and bearish
candle lines indicate the direction of the
market and investors psychological
conflicts at important turning points.”
www.candlecharts.com
It is easy to see who is in control here
15
How about now with these “spinning tops”?
16
Candles reveal
twice the
information as
a bar chart
17
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Candles help us read the market’s message
What do the series of bullish shadows tell us about supply/demand near 63.50?
Is it any surprise what happened a few weeks later at that level?
18
www.candlecharts.com
Quickly see “ The Mode of the Market”
19
www.candlecharts.com
What candles do – and don’t do
What happen each time this gets near $43? Candles‐ or any technical system can’t forecast surprises
www.candlecharts.com
20
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success 1
Founder and President: Candlecharts.com
21
INTRODUCING STEVE NISON’S 360 CANDLE ANALYSIS
New – Strict criteria of a candle signal
New – Nison Insights
New – Candles as support/resistance
New – Pattern in FX and non FX
New – Price confirmation of a candle signal New – Momentum trading with candles
New – Detailed psychology behind each signal
WWW.CANDLECHARTS.COM
22
BASIC CRITERIA
• Open and close the same (or within a few cents or
pips)
• Market trending up or down
• Also called a cross
• Doji in a rally called Northern doji
• Doji in a decline called Southern doji
“A time to wait without a position in the market”
PATTERN PSYCHOLOGY
• For a sustainable rally, market has to be “pushed
up” - a doji shows the bullish momentum has now
been curbed. The bulls now become concerned with
this lack of sustained strength.
• Markets can sink of their own weight (i.e. don’t need
sellers to pull markets lower- lack of buyers will do
that) a doji hints buyers are now starting to absorb
supply.
• The market is at a delicate turning period and could
go either way.
123
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  If early in uptrends/downtrends, or middle of a box range,
doji is not important
24
www.candlecharts.com
Doji and Prior Move
Is the market
overextended
at these doji?
www.candlecharts.com
This doji is showing a
shift in psychology since it
comes during a rally
25
Is this doji telling us there is something
different about the market?
www.candlecharts.com
26
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Doji in a Box Range
www.candlecharts.com
27
 If early in uptrends/downtrends, or middle of a box
range doji not important
 Spinning tops and doji could be just a pause to a
continuing trend
www.candlecharts.com
28
29
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success The pause that refreshes?
www.candlecharts.com
30
 If early in uptrends/downtrends, or middle of a box
range doji not important
 Spinning tops and doji could be just a pause to a
continuing trend
 Doji generally work better at calling tops than
bottoms.
www.candlecharts.com
31
 If early in uptrends/downtrends, or middle of a box
range doji not important
 Spinning tops and doji could be just a pause to a
continuing trend
 Doji generally work better at calling tops than
bottoms.
 Analyze shadows. Interpretation will differ on the type
of upper and lower shadows
shadows.
Center Doji = Equal length shadows
Most classic doji where bulls and bears are in balance
Upper Shadow Doji:
Unsustainable buying strength
Lower Shadow Doji:
Some buying strength left in the market
Source: Kabushiki Keisen no Mikata Tsukaikata
Toshika No Tame No Senryakuzu- Kichitaro
Kisamori
 Confirmation is important since market at tipping point.
www.candlecharts.com
32
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success “Depending on the type of
movement on the next day, one can
get completely different readings”
readings
www.candlecharts.com
33
Confirmation
Two Kinds of Confirmation

East + West

Price Confirmation
34
East + West Confirmation
Where a candle
signal confirms a
g
Western technical
signal
35
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Price Confirmation
Using a move after the initial candle signal to validate signal

Can be a close (or open) above (for bull candle signal) or below (for bear candle signal) the close of candle signal.

Less important to have East/West confirmation

Less important for momentum trades

The more ideal the candle pattern, the less important the candle confirmation
36
37
Candles and Price Confirmation
Plus of price confirmation:
Improve odds of hammer working, But…
www.candlecharts.com
38
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Price Confirmation Cautions

Consider buy/sell stop limits

Remember risk/reward!

Depends on your trading style

Higher probability at cost of profit potential
40
Price confirmation cautions

Consider buy/sell stop limits

Remember risk/reward!

Depends on your trading style

Higher probability at cost of profit potential
Confirmed
Hammer www.candlecharts.com
41
Which of
these two
scenarios is
more
important
to have
bearish
price
confirmation
of the doji?
Note: this will not
happen in FX
www.candlecharts.com
42
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Doji and Price Confirmation
New high
close and bull
shadow. Bear
confirmation thus
more important
confirmed
43
www.candlecharts.com
Because a doji or
a spinning top in FX will
be near the prior session
close, you may want to
wait for bear confirmation
44
www.candlecharts.com
Forex doji and Price Confirmation
confirmed
Why would you not be too
nervous on this doji?
www.candlecharts.com
44A
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Doji – but also a new high close
3
2
1
confirmed
What about this doji?
www.candlecharts.com
45
Which of
these two
scenarios is
more
important
to have
bearish
price
confirmation
of the doji?
www.candlecharts.com
46
Doji and Shadows
Equal shadows
B ll shadow
h d
Bull
www.candlecharts.com
47
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Criteria: Use the highest
high of those two sessions
(top of upper shadow) as
resistance
Implication: Close over that
area: market is “refreshed”.
That is when we consider
the bull momentum trade
www.candlecharts.com
48
Doji and Momentum
Doji as resistance
www.candlecharts.com
50
Doji and momentum trading
“Market refreshed”
www.candlecharts.com
51
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Doji and momentum trading
Doji confirming resistance www.candlecharts.com




52
Review of candle benefits
What candles don’t do
Ad an ed doji ta ti s and on epts
Advanced doji tactics and concepts
Price confirmation
53
Founder and President: Candlecharts.com
54
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Long Lower (Bullish) Shadows
Although this market is
descending, the long
lower shadows offsets
some of the negative
outlook
55
www.candlecharts.com
56
www.candlecharts.com
57
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
4
5
6
Strong Sessions
7
8
9
Neutral Sessions
10
Bearish Sessions
58
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
1
4
5
6
Strong Sessions
Name
7
8
9
Neutral Sessions
Characteristics
Tall white double crew
cut
10
Bearish Sessions
Nison Notes
No shadows
59
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
2
Name
Tall white closing crew
cut
4
5
6
Strong Sessions
7
8
9
Neutral Sessions
10
Bearish Sessions
Characteristics
Nison Notes
Small lower shadow
Lower shadow shows
market can break
under opening price
© www.candlecharts.com
60
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
3
4
6
Strong Sessions
Name
Power line (hammer)
5
7
8
9
Neutral Sessions
Characteristics
10
Bearish Sessions
Nison Notes
Shadow 2x or more real body. Can have
very small upper shadow.
61
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
4
4
5
6
Strong Sessions
Name
7
8
9
Neutral Sessions
Bearish Sessions
Characteristics
Nison Notes
Upper shadow 25%
or less real body
Upper shadow shows
some rejection at
higher prices
Tall White
62
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
5
10
Name
Small white with bull
shadow
4
5
6
Strong Sessions
7
8
Neutral Sessions
Characteristics
9
10
Bearish Sessions
Nison Notes
Lower shadow less than 2x real body. Can
have very small upper shadow.
© www.candlecharts.com
63
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
6
4
6
Strong Sessions
Name
Medium upper shadow
Tall white
5
7
8
9
Neutral Sessions
Characteristics
10
Bearish Sessions
Nison Notes
“Maintains the
Strength” but showing
Same as line 4 but upper shadow 25% to
100% real body
increasing price
rejection
64
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
Name
7
Long upper shadow tall
white
4
5
6
Strong Sessions
7
8
9
Neutral Sessions
Characteristics
Bearish Sessions
Nison Notes
Rare candle – ‘”Gives
Same as 4 but upper shadow more than
100% of real body
slight fearful feeling”
65
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
8
10
Name
White spinning top
4
5
6
Strong Sessions
7
8
Neutral Sessions
Characteristics
Can have upper and lower shadows less
than 100% of real body
© www.candlecharts.com
9
10
Bearish Sessions
Nison Notes
“A drifting market”
66
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
5
6
Strong Sessions
Name
Small white with bear
shadow
9
4
7
8
9
Neutral Sessions
Characteristics
Bearish Sessions
Nison Notes
Upper shadow from 1 to less than 2x real
body. Can have small lower shadow.
67
© www.candlecharts.com
More Bullish
1
2
Less Bullish/Bear
3
Very Strong Sessions
#
10
4
6
Strong Sessions
Name
Shooting star
5
7
8
9
Neutral Sessions
Characteristics
Nison Notes
Upper shadow at least
2x real body. Can have small lower
shadow.
68
More Bearish
2
10
Bearish Sessions
© www.candlecharts.com
1
10
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
Weak Sessions
Neutral Sessions
© www.candlecharts.com
Bullish Sessions
69
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bearish
1
2
Less Bearish/Bullish
3
6
4
7
9
5
10
8
#
Name
Characteristics
1
Long black double crew
cut
No shadows
Nison Notes
70
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
Name
2
Long black closing crew
cut
Weak Sessions
Neutral Sessions
Bullish Sessions
Characteristics
Nison Notes
Small Upper shadow
Upper shadow shows
market can break
under opening price
71
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
3
Name
Shooting Star
Weak Sessions
Neutral Sessions
Characteristics
Bullish Sessions
Nison Notes
Shadow 2x or more real body. Can have
very small lower shadow.
© www.candlecharts.com
72
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bearish
1
Less Bearish/Bullish
2
3
4
5
6
7
9
10
8
Very Weak Sessions
#
4
Weak Sessions
Name
Long black
Neutral Sessions
Bullish Sessions
Characteristics
Nison Notes
Lower shadow 25% or less real body
Lower shadow shows
demand at lower prices
73
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
5
Weak Sessions
Name
Small black with bear
shadow
Neutral Sessions
Characteristics
Bullish Sessions
Nison Notes
Upper shadow less than 2x real body. Can
have very small lower shadow.
74
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
6
Name
Medium lower shadow
long black
Weak Sessions
Neutral Sessions
Bullish Sessions
Characteristics
Nison Notes
Same as line 4 but lower shadow 25% to
100% real body
Showing increasing
demand and price
rejection at lower levels
© www.candlecharts.com
75
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
7
Weak Sessions
Name
Long lower shadow
black
Neutral Sessions
Characteristics
Bullish Sessions
Nison Notes
Same as 4 but lower shadow more than
100% of real body
Rare candle – ‘”Gives
slight fearful feeling” to
bears
76
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
6
7
9
10
8
Very Weak Sessions
#
8
Weak Sessions
Name
Black spinning top
Neutral Sessions
Bullish Sessions
Characteristics
Nison Notes
Can have upper and lower shadows less
than 100% of real body
“A drifting market”
77
© www.candlecharts.com
More Bearish
1
2
Less Bearish/Bullish
3
4
5
9
10
8
Very Weak Sessions
#
9
Name
Small black with bull
shadow
Weak Sessions
Neutral Sessions
Characteristics
Bullish Sessions
Nison Notes
Lower shadow from 1 to less than 2x real
body. Can have small upper shadow.
© www.candlecharts.com
78
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success More Bearish
1
Less Bearish/Bullish
2
3
4
5
6
7
9
10
8
Very Weak Sessions
#
10
Weak Sessions
Name
Hammer
Neutral Sessions
Characteristics
Bullish Sessions
Nison Notes
Lower shadow at least 2x real body. Can
have small upper shadow.
© www.candlecharts.com

Reviewed importance of real bodies and shadows

White real body/shadow progression from
White
real body/shadow progression from
more to less bullish 
Black real body/shadow progression from
more to less bearish
79
80
Candlesticks
Re-Ignited!
Ad
Advanced
d
Single Candle Lines:
“One sided” shadow
candles
Founder and President:
Candlecharts.com
© www.candlecharts.com
81
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success BASIC CRITERIA
• Market in a downtrend
• Real Body White or Black
• Small real body at, or near, top of range.
• Lower shadow at least 2x height real body
“A chance to buy at the bottom”
STRICT CRITERIA • White real body
• No upper shadow
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Low of hammer as support
• Consider shorting under low of
pattern.
After this last burst of selling, new buying
has started. This rejection of lower prices is
indicating a change in balance between bulls
and bears. The net result: lessening of
bears’ confidence of sustainability of lower
price levels (and a reason for bulls to start
getting more optimistic).
www.candlecharts.com
82
 White real body hammer is called a
“Power Candle”
 Can have small upper shadow (around
10% of lower shadow)
 The more oversold and the longer the
shadow, the higher degree of
confidence
 Often a retest of lower shadow
 Bullish counterpart of Shooting Star
(not a Hanging Man).
 A hammer with a open/high/close at
high is a Dragonfly doji
 As a single candle line it is same in FX
as other markets
www.candlecharts.com
83
A candlestick line or pattern requires two criteria:
• The shape of the line or pattern • The preceding trend
84
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Hammer and trend
Not a hammer
Power line
www.candlecharts.com
85
Hammer your way to profits
Dragonfly doji
www.candlecharts.com
86
Retest of hammer’s shadow
www.candlecharts.com
87
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Hammer As Support
Will
often
retest
lower
shadow
www.candlecharts.com
88
Hammer as Support
Market will often retest hammer’s lower shadow
www.candlecharts.com
89
Same Signal- But look at the Difference in Trading
Tactics
“To know where you
you stand is as stand is as
important as candle pattern recognition.”
www.candlecharts.com
90
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Hammer – Stops/Momentum
Exit (or short)
www.candlecharts.com
91
Hammers and Stops/Momentum
Hammer near support
Protective stop or momentum trade
www.candlecharts.com
92
BASIC CRITERIA
• Market in a uptrend
• Small real body at, or near, top of range.
• Must come at new high for move or
significant rally
• Lower shadow at least 2x height real body
“S
“Suggests
t a peak
k iin th
the market”
k t”
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Not used as resistance
• Momentum: Trend is still up with
this signal
Although it may seem that the market
still has rising power left, it has shown
that once the market has fallen, it has
become very fragile.
www.candlecharts.com
93
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  Same as the hammer except, market in
an uptrend
 Can have small upper shadow (around
10% of lower shadow)
 Must have bear confirmation with a
lower close, or for those more
aggressive, a lower opening
 This is not the bearish counterpart of
Hammer. The Shooting Star is the
bearish counterpart.
 Because of the bullish shadow, do not
place much emphasis on this signal.
www.candlecharts.com
94
Importance of Price confirmation
2 3
1
Pain!
5
4
www.candlecharts.com
95
BASIC CRITERIA
• Market in an uptrend
• Black or White real Body
• Small real body at, or near, bottom of range.
• Upper shadow at least 2x height real body
“A crack has entered the market”
STRICT CRITERIA
STRICT CRITERIA • Black real body
• No lower shadow
SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• High of shooting star as resistance
• Consider buying above high of
pattern
PATTERN PSYCHOLOGY The strong retreat from higher prices shows either
or/and:
1) bulls stepping back at higher levels
2) bears getting more aggressive
The result is that the bulls have second thoughts of
their power and bears now have encouragement. 96
For free continuing education and exclusive support for this video go to www.nisonu.com
Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  Black real body most important.
 Can have small lower shadow (around 10%
of upper shadow).
 The more overextended the rally and the
longer the shadow, the higher degree of
confidence.
 Unlike a hammer, market doesn’t often
retest upper shadow.
 Bearish counterpart of Hammer (not
Inverted Hammer.)
 A Shooting Star with a open/high/close at
low is a Gravestone doji.
 As a single candle line this is the same in
FX
97
www.candlecharts.com
Shooting Star with Price Confirmation
confirmed
www.candlecharts.com
98
Shooting star but no price confirmation
www.candlecharts.com
99
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Price Confirmation
If a candle signal confirms a western signal, there is less need for price confirmation
www.candlecharts.com
100
Stops and Momentum Trading
Close over here would be a plus for the bulls
www.candlecharts.com
101
Gravestone Doji
www.candlecharts.com
102
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Gravestone Doji
Gravestone doji
Close under m.a. support
25 day moving average
www.candlecharts.com
103
BASIC CRITERIA
• Market in downtrend
• Small real body at, or near, bottom of range.
• Must come at new low for move or significant
decline
• Upper shadow at least 2x height real body
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Not used as support
While the market closes at, or near its
low, it has shown an ability to rise. This
may get the bears slightly nervous.
• Momentum: Trend is still down with
this signal
www.candlecharts.com
104
 Same as the shooting star, except
market in a downtrend
 Can have small lower shadow (around
10% of lower shadow)
 Must have bull confirmation with a
higher
g
close,, or for those more
aggressive, a higher opening
 This is not the bullish counterpart of
Shooting Star. The Hammer is the
bullish counterpart.
 Because of the bearish shadow, do not
place much emphasis on this signal.
www.candlecharts.com
105
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Importance of Price Confirmation
Always needs candle confirmation with this signal and hanging man candle.
www.candlecharts.com
106
One sided candles with Nison 360° Candle Analysis:










Review of basic criteria
Strict Criteria
Using as support or resistance
Detailed psychology behind each pattern Momentum trading Nison insights
Why hanging man and inverted hammer lines less important
Single candle lines the same in FX
Importance of trend
Can’t buy/sell on every candle signal
107
Candlesticks
Re-Ignited!
Advanced
Candles:
The Blended
Candle Line
Founder and President:
Candlecharts.com
www.candlecharts.com
108
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success “Japanese charts have meaning in a
single candle, and when two candles
are combined, the meaning becomes
more significant.”
www.candlecharts.com
109
A blended candle is a way of “compressing” combinations
of candle lines into as if they made one candle
110
Source: KABUSHIKISOUBA NO
TECHNICAL BUNSEKI – G.Ikutaro
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.
111
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success think of Blended candle as a “Summary candle” of the
pattern analyzed. How does this help?
2‐ To compare variations of candle patterns to determine the strength of the signal
1‐ To determine if a pattern is net bullish or bearish
Classic dark cloud cover www.candlecharts.com
How is this non classic dark cloud cover different? What does it mean to the outlook?112
Candlesticks
Re-Ignited!
Advanced
Double Candle
Lines:
Tweezers
Founder and President:
Candlecharts.com
www.candlecharts.com
113
CRITERIA
• Two candles with matching highs (tweezers top) or lows (tweezers bottom)
• Uptrend for tweezers top and downtrend for tweezers bottom. But trend not critical. • The first candle must be a long white (tweezers top) or long black (tweezers
(tweezers top) or long black (tweezers bottom)
• 2nd candle must reflect diminishing of prior force
Source: HAJIMETE KABUKA CHATO WO YOMU HITO NO
HON by K. Hoshi
PATTERN PSYCHOLOGY The first candle shows bulls (tweezers top) or bears (tweezers bottom) are dominating. With the second candle showing an inability to continue the move implied by the first candle, we are starting to see the power of 114
the prior trend dissipating. For free continuing education and exclusive support for this video go to www.nisonu.com
Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  The more the 2nd candle closes into the
first candle, the better the signal.
 This is a minor pattern unless there is
a candle reversal signal that also
emerges at the 2nd candle (i.e. piercing
pattern, shooting star).
 Not used as support or resistance or
momentum trading unless 2nd candle is
a reversal candle.
Source: HAJIMETE KABUKA CHATO WO YOMU HITO NO
HON by K. Hoshi
 If both candles for tweezers top close
at, or near the highs, or tweezers
bottom close at or near the lows, this
pattern would have less significance.
115
www.candlecharts.com
Tweezers top
Think this market had troubles near $8.20?
Tweezers top
Why is this not a Tweezers bottom?
www.candlecharts.com
116
Tweezers Bottom
www.candlecharts.com
117
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Using the “Blended Candle” to increase candle insights:



Is combination of candle lines bullish or bearish?
Is the candle pattern more –
Is the candle pattern more – or less –
or less – strict?
Tweezers tops and bottoms – correct interpretation
118
Candlesticks
Re-Ignited!
Advanced
Double Candle
Lines:
The Bull Signals
Founder and President:
Candlecharts.com
www.candlecharts.com
www.candlecharts.com
119
120
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bullish
Counter
Attack
Pattern
Piercing
Pattern
Bullish
Engulfing
Pattern
Bull
Sash
Pattern
Bull
Separating
Line
www.candlecharts.com
121
BASIC CRITERIA
• Two session pattern
• Downtrend but even with no apparent trend,
would be a positive signal
• Black real body followed by a long white
real body that gaps lower on the open and
then closes at or near black candle close.
• 2nd candle tall white
STRICT CRITERIA • Both candles are large (very rare)
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Not used as support or resistance.
• Consider selling on move under low
of pattern.
With the gap down, bears are relieved. The
“bulls are backed into a corner and came
out fighting in a heroic fight. Kamikaze
fights are always frightening, so the bears
seeing this take to the sidelines and the
bulls may get reinforcements.”
www.candlecharts.com
122
 No pattern like this for FX since
the market gaps lower.
 While the ideal pattern is both large
real bodies, we would still view this
as important even if only the white
candle
dl was large
l
 Closes do not have to be exactly
the same
 Opposite of bearish counter attack
www.candlecharts.com
123
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bull Counter Attack
What do you think the bears are thinking after this session?
PS‐ watch your language!
Bull Counter Attack
www.candlecharts.com
124
BASIC CRITERIA
• Two session pattern
• Market in downtrend
• Open of white candle under prior close
• White candle closes more than ½ way into
black real body.
STRICT CRITERIA • White candle opens under prior low
• Long black and tall white candle
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Lowest low of both candles as
support
• Consider selling on move under
support level
Bears in control is echoed by long dark
candle. Sharp gap lower means bears have a
strong foothold. But, with sharp bounce back
by end of the session, the market has
“displayed uneasiness at a low price.” The
bears now sense danger.
www.candlecharts.com
125
 For FX, intraday and indexes can have the
same (or within 2 pips for FX) open as prior
close
 Long black and then long white shows
extreme shift in psychology
 The more the white candle opens under
prior low /close, the better the signal (for
non FX).
 Opposite of dark cloud cover
FX Pattern
 Related patterns which need not be
remembered are on-neck (atekubi), inneck(irikubi) and thrusting (sashikomi).
www.candlecharts.com
126
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Piercing pattern as support
127
www.candlecharts.com
Piercing Pattern
And this?
Not Piercing Patterns
Although first candle wasn’t long black, what pattern is this?
www.candlecharts.com
128
Piercing Pattern
Not a piercing pattern
For intraday okay to have open at‐ or very close‐ to prior close
www.candlecharts.com
129
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Early clues of shifting supply/demand
www.candlecharts.com
130
BASIC CRITERIA
• Two session pattern
• Market in a downtrend
• White real body wraps around dark real
body
STRICT CRITERIA • Small first candle small dark candle or doji
• Second candle is tall white that wraps
around high-low range of first candle.
SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Lowest low of either candle as
support
• Consider shorting under low of
pattern.
PATTERN PSYCHOLOGY • Small first candle reflects deterioration of
bear trend.
• Tall white candle leaves no doubt the bulls
now in driver’s seat.
www.candlecharts.com
131
 For FX, intraday and indexes can have the
same open (or within 2 pips for FX) of prior
close
 The pattern has less significance if the real
bodies are about the same size.
 First candle can be doji
 Candles in Engulfing Pattern (large wraps
around small candle) are opposite those in
Harami Pattern (small candle in a large
candle)
FX Pattern
 If Bullish Engulfing pattern appears during
rally, Japanese call it a “last engulfing
pattern”, and may be buying climax.
Confirmation close under close of white
candle. This is not an important pattern, just
think about not buying.
www.candlecharts.com
132
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success This is interesting: I recently purchased a
technical analysis package from a
“WELL KNOWN” technical analysis
guru. During his charting presentation
he made several references to
candlestick patterns, and each
references that he made was absolutely
wrong! …During a strong uptrend, he
called a large white real body after a
small black real body a bullish engulfing
pattern. If I remember right – a bullish
engulfing pattern doesn’t count during an
uptrend. If I hadn’t bought and studied
your package, I never would have known
that and would have assumed that he
was right.
Thanks again for your great work!
Carl
133
www.candlecharts.com
Bullish Engulfing Patterns
134
www.candlecharts.com
Price confirmation
No price confirmation after this bullish engulfing pattern
Why didn’t
I have this window as resistance?
www.candlecharts.com
Price confirmation after this bullish engulfing pattern, but risk is still to low of pattern
low of pattern
135
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Price confirmation
If you waited for the close of session of the bull engulf look at what price you would be buying. www.candlecharts.com
136
Momentum trade
Why would you not buy on this pattern? Bear momentum trade www.candlecharts.com
137
BASIC CRITERIA
• Two session pattern
• Market in downtrend, but trend not critical
• First candle unusually long dark candle
• Second candle is much smaller than 1st candle
(about 25% or less).
• 2nd candle can be the same- or opposite colorof first candle
• 2nd real body is within 1st candle’s real body
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Not used as support (unless
candle is reversal signal (i.e.
hammer)
2nd
The long black candle echoes the heaviness of
supply. But, the next session’s gap up, and
lack of downside, follow through results in the
bears seeing that their drive is becoming
impeded.
• Not used for momentum trading
www.candlecharts.com
138
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  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 black candle, the better the
signal.
 Because FX, etc, white candle can’t get
deeply into black real body, it is best to
wait for bull confirmation by a higher
open or close than the white real body.
FX Pattern
 In general, the less the 2nd candle gets
into the black candle, the more
confirmation is needed.
 Opposite of bearish harami
www.candlecharts.com
139
Bull harami
Think the market is different on this session
compared to prior session?
www.candlecharts.com
140
Bull Harami
Potential
Selling climax
www.candlecharts.com
141
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bull Harami and momentum trading
Momentum Trade
www.candlecharts.com
142
BASIC CRITERIA
• Trend not important
• Black candle followed by white candle that
opens within black real body and closes over
prior open.
STRICT CRITERIA • Both long real bodies
• 2nd candle closes over prior high
• White real body closes at, or near, its highs
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Lowest low of both candles as
support
• Consider selling on move under low
of pattern
The surprise gap, higher opening on the
second day after a strong selling session,
may initially be of minor concern. But, with
the white candle’s strong close, the bears
sense danger and also gives the bulls cause
for optimism.
www.candlecharts.com
143
 Since the market has to gap higher,
this pattern not applicable to FX.
 The higher the market gaps on the
open, and the higher the close on the
white candle, the more meaningful the
pattern
 Remember risk/reward since this
pattern is completed after substantial
move has already occurred.
 Opposite of Bear Sash pattern
 If open of white candle is same (or
higher) as prior open, it is a Bull
Separating Line.
www.candlecharts.com
144
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bull Sash Pattern
Bull Sash
145
www.candlecharts.com
Risk/Reward
Bull Sash
Bull Sash
Both of these are poor trade candidates
www.candlecharts.com
146
BASIC CRITERIA
• Trend not important
• Black candle followed by white candle that opens at
(or above) prior open. Then closes over black candle
open.
STRICT CRITERIA • Both long
g real bodies (rare)
(
)
• White real body closes at, or near, its highs
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Lowest low of both candles as
support
• Consider selling on move under low
of pattern
While the bears may be surprised to see the market
gapping sharply higher from a prior weak session,
imagine their fear (and the bulls happiness) as the
market continues its advance without hesitation the
next session. The tide of the market has changed
from one to which the bears were in control to one
where the bulls are now calling the shots.
www.candlecharts.com
147
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  Easy way to remember this pattern is
the opens are the about the same (or
the 2nd candle open gaps away from 1st
candles open.)
 Since the market has to gap higher,
this pattern not applicable to FX.
FX
 Major challenge with this pattern is
since it is completed after substantial
move, it usually means poor
risk/reward.
 Opposite of Bear Separating Pattern
 If open of white candle is within prior
black real body, it is a Bull Sash
Pattern.
www.candlecharts.com
148
Bull Separating line
www.candlecharts.com
149
Looks good on the outside!
This is a poor trade candidate‐ why?
www.candlecharts.com
150
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bull Separating line
www.candlecharts.com
151
Bull Separating line
Bull separating but look where it is!
www.candlecharts.com
152
Advanced double candle bull signals using candle progression using in‐depth candle analysis for:

Bull counter ‐ attack

Piercing Pattern

B ll
Bull sash h

Bullish Engulfing Pattern

Bull Separating lines

Bull Harami and confirmation

How some patterns have poor risk/reward and other Nison insights
153
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Candlesticks
Re-Ignited!
Advanced
Double Candle
Lines:
The Bear Signals
154
Founder and President:
Candlecharts.com
www.candlecharts.com
CANDLE PROGRESSION
DESCENDING BLACK REAL BODY
Bearish
Counter
Attack
Pattern
Dark
Cloud
Cover
Bearish
Engulfing
Pattern
Bear
Sash
Pattern
Bear
Separating
Line
155
BASIC CRITERIA
• Two session pattern
• Uptrend but, even with no apparent trend
would be a cautionary signal
• White real body followed by a black real
body that gaps up on the open and then
closes at or near white candles' close
STRICT CRITERIA • Both candles are large (very rare)
• Large black real body
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Not used as support or resistance.
• Consider buying on breakout over
high of pattern.
With the tall white, and especially with the
gap higher next session, the bulls are
happy. But then a strong bear counter force
comes in to drag the market back to the
prior close. The tone of the market now
shifts from bullish optimism to uncertainty. 156
For free continuing education and exclusive support for this video go to www.nisonu.com
Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  No pattern like this for FX since
the market gaps higher
 While the ideal pattern is both large
real bodies, we would still view this
p
y the black
even if only
as important
candle was large
 Closes do not have to be exactly
the same
 Opposite of bullish counter attack
www.candlecharts.com
157
Bear Counter Attack
www.candlecharts.com
158
Bear Counter- Attack
While this is not a bear counter attack since the closes are not the same‐ do you think there is a change in psychology after this session?
Bull Counter Attack? www.candlecharts.com
159
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success BASIC CRITERIA
• Two session pattern
• Market in uptrend
• Open of black candle higher than prior close
• Black candle closes into white candle
STRICT CRITERIA • Bl
Black
k candle
dl closes
l
more than
th 50% iinto
t white
hit
real body
• Black candle opens above prior high
• Tall white and black candles
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
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.
160
 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
p
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
161
Dark Cloud Cover defines Resistance
www.candlecharts.com
162
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Dark Cloud Cover at resistance
Why is this not a bullish t b lli h
engulfing pattern?
www.candlecharts.com
163
Dark Cloud Cover
164
Dark Cloud Cover and momentum
www.candlecharts.com
165
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Dark Cloud Cover
Is this telling you that there is a shift in psychology?
Not dark cloud cover
Chart courtesy of Genesis FT
166
www.candlecharts.com
Dark cloud rains pain for the bulls
“Oh crap!”
Think there is trouble near $410?
near $410?
Happy time for the bulls‐ new high close!
www.candlecharts.com
167
BASIC CRITERIA
• Two session pattern
• Market in an uptrend
• Black real body wraps around light real
body
STRICT CRITERIA • Small first candle small white or doji
• Second candle is long dark that wraps
around high-low range of first candle.
SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Highest high of either candle as
resistance.
• Consider buying on breakout over
high of pattern.
PATTERN PSYCHOLOGY • Small first candle reflects rallying could be
running out of steam
• Long black candle visually shows the bears
are now the controlling force.
www.candlecharts.com
168
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  For FX, intraday and indexes can have the
same (or within 2 pips for FX) open as prior
close
 The pattern has less significance if the real
bodies are about the same size.
 First candle can be doji
 Candles in Engulfing Pattern (large wraps
pp
those in
around small candle)) are opposite
Harami Pattern (small candle in a large
candle)
 If Bearish Engulfing pattern appears during
selloff, Japanese call it a “last engulfing
pattern and may be selling climax.
Confirmation is a close above black candle
close. This is not an important pattern- just
think about not selling.
FX Pattern
169
www.candlecharts.com
Misinformation can cost you Big $$$



170
www.candlecharts.com
Candles as Support
S1
www.candlecharts.com
171
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Momentum Trading
www.candlecharts.com
172
Candles and Momentum – trading the breakouts
www.candlecharts.com
173
Price confirmation
The less ideal the pattern the more candle confirmation
is needed.
Why is this bearish engulfing pattern less than ideal?
Confirmation with lower close but risk
still to high of pattern
www.candlecharts.com
174
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Price confirmation
Since pattern confirmed resistance less reason for price confirmation‐ but it depends on you trading style.
www.candlecharts.com
175
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
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
176
 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.
FX Pattern
 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.
 In general, the less the 2nd candle gets
more into the white candle, the more
confirmation is needed.
 Opposite of bullish harami
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177
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bear Harami
Because these are near the highs of the prior candle would want bear candle confirmation
Not Bear Harami
www.candlecharts.com
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Confirmation important in FX
www.candlecharts.com
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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
SUPPORT/
MOMENTUM TRADING
• Highest high of both candles as
resistance
• Consider buying on breakout over
high of pattern
The white candle means the bulls are running
the show. The next session, the market gaps
lower and is not only unable to make up 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.
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success  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.
181
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Bear Sash
Bear Sash
182
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Bear Sash
Bear Sash
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Being a Market Chameleon
Bear Sash
Bull Sash
www.candlecharts.com
184
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 B th long
l
b di (rare)
(
)
• Both
reall bodies
• Black real body closes at, or near, its lows
PATTERN PSYCHOLOGY SUPPORT/MOMENTUM TRADING
SUPPORT/
MOMENTUM TRADING
• Highest high of both candles as
resistance
• Consider buying on move above
high of pattern
With the gap down on 2nd day, the bulls sense
danger. 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
185
 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
186
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Bear Separating line
www.candlecharts.com
187
Bear Separating Line
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188
Bear Separating line
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189
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Advanced double candle bear signals using candle progression using in‐depth candle analysis for:

Bear counter ‐ attack

Dark cloud cover

Bear sash 
Bearish Engulfing Pattern

Bear Separating lines

How some patterns poor trade candidates

Bear Harami and confirmation 190
Founder and
President: Candlecharts.com
www.candlecharts.com
191
Steve’s
Favorite
Candle pattern
192
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success A rising window is support
Support
Zone
Most important support level 193
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A falling window is resistance
Most important resistance level Resistance
Zone
www.candlecharts.com
194
Small vs. Large windows
Large
Large window
Small window
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195
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Importance of Windows
Shooting Star
196
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Importance of Windows
197
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Large and Small Windows
S1
S2
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198
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Large and Small Windows
R2
R1
www.candlecharts.com
199
200
Change of Polarity
Resistance
Resistance
Support
Support
201
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success 202
Windows and Change of Polarity
The most important aspect is the many times this resistance was tested‐ (which may have to do with the window)
203
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Island Tops and Bottoms and Candles
Island Top
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Island Bottom
204
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success How Windows Give you a Jump on the Competition
Formed an island bottom at this session S1?
205
www.candlecharts.com
How Windows Give you a Jump on the Competition
R1?
Formed an island top at this session www.candlecharts.com
206
Windows and Confirmation
Closed under window by 2 and 9 cents and next day opened and closed over window again
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207
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Three windows-note of caution
208
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Secrets of Using Intraday Candle
Charts to Refine Entries with Windows
For small windows – or when near the bottom of h
th b tt
f
larger windows – look for intraday candle reversals
209
Using intraday candles to
confirm a Daily window
Turn signal at $31.15 on this 30 minute chart compared to $31.60 on daily chart.
While the bottom of this window (red dashed line) did hold as support:
1)Based on black candle, it looked dangerous to buy. 2)By the end of the bull engulf day, it would have been a poor trade‐ why?
Bottom of rising window on daily chart
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210
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Steve Nison’s Candlesticks Re‐Ignited: Advanced Candlesticks to Boost Confidence and Success Advanced window tactics:





Review of window basics
Large compared to small windows
Change of Polarity and windows
h
f l i
d i d
Island tops/bottoms and windows
Confirmation with intraday candles
211
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