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    nantha74
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    This document discusses candlestick charting basics and early reversal signals. It introduces Steve Nison and his company Candlecharts.com as experts in candlestick patterns. It then defines how candlestick charts are constructed using open, close, high, and low prices to represent real and shadow bodies. Several basic and advanced candlestick patterns are defined that can indicate reversals, such as doji, hammers, shooting stars, and engulfing patterns. The importance of confirming signals with volume is also mentioned.

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    Forex

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    This document discusses candlestick charting basics and early reversal signals. It introduces Steve Nison and his company Candlecharts.com as experts in candlestick patterns. It then defines how candlestick charts are constructed using open, close, high, and low prices to represent real and shadow bodies. Several basic and advanced candlestick patterns are defined that can indicate reversals, such as doji, hammers, shooting stars, and engulfing patterns. The importance of confirming signals with volume is also mentioned.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    101 views36 pages

    Candlestick Basics

    Uploaded by

    nantha74
    This document discusses candlestick charting basics and early reversal signals. It introduces Steve Nison and his company Candlecharts.com as experts in candlestick patterns. It then defines how candlestick charts are constructed using open, close, high, and low prices to represent real and shadow bodies. Several basic and advanced candlestick patterns are defined that can indicate reversals, such as doji, hammers, shooting stars, and engulfing patterns. The importance of confirming signals with volume is also mentioned.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 36

    Candlestick Charting Basics:

    Spotting the Early Reversals Signals

    By

    Steve Nison, CMT


    President, Candlecharts.com Inc.
    555 Route 18 South PMB 2000 East Brunswick, NJ 08816 USA Telephone: 732-254-8660 Facsimile: 732-390-6625 Web site: www.candlecharts.com Email: nison@candlecharts.com

    Media Comments
    Japan's Candlesticks Light Traders' Path --- Wall Street Journal Whether you day trade or hold positions candlesticks are a must --- Investors Library Candlesticks: A New Light in Technical Analysis --- Barrons

    Constructing the Candle Line


    high close

    Shadow
    open

    Real Body
    open low close

    Real Bodies / Shadows

    Doji

    Drawing Candle Lines

    session open high low close 1 2 3 4 5 23 26 23 25 27 26 28 27 28 27 21 23 22 22 25 25 27 22 25 25

    28 27 26 25 24 23 22 21

    2 3 4 5

    Drawing Candle Lines

    session open high low close 1 2 3 4 5 23 26 23 25 27 26 28 27 28 27 21 23 22 22 25 25 27 22 25 25

    28 27 26 25 24 23 22 21

    2 3 4 5

    Small Real Bodies (spinning tops)

    Candle(stick) Chart - spinning tops

    Small Real Bodies

    Doji

    Doji after tall white candle

    Doji after tall white

    Doji as Resistance

    Gravestone Doji

    Shadows

    Long Upper (Bearish ) Shadows

    Long Upper Shadows

    Long Lower (Bullish) Shadows

    Hammer

    black or white

    18

    Hammers

    Shooting Shooting Star Star


    black or white

    Shooting Star
    ?

    High Wave Candles

    High Wave Candle


    new high close, but??

    High Wave Candle

    High Wave Candle

    Whos in Charge?

    Whos in Charge Now?

    Convergence of Candles Define Support

    2 1

    Engulfing Patterns
    Bullish Engulfing Pattern

    Bearish Engulfing Pattern


    28

    Bearish

    Engulfing Patterns

    Bullish

    Bullish Engulfing Pattern

    How many black candles did this wrap around?

    Bearish Engulfing Pattern

    The Trading Triad


    Candle Charts

    Western

    Capital Preservation
    32

    Volume confirms signal

    High Volume Hammer

    33

    STOPS
    Bearish Engulfing Pattern Shooting star

    Shooting Star (convergence)


    Shooting Star

    ?Web site: www. candlecharts.com ?E-mail: nison@candlecharts.com ?Telephone: 732.254.8660

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