Steve Nison's Profiting in Forex

Steve Nison’s Profiting in Forex :
Using Candlesticks to Catch the Next Move
By
Steve Nison, CMT
President: Candlecharts.com
Tel: 732-254-8660 Fax: 732-390-6625
Web site: www.candlecharts.com E–mail: nison@candlecharts.com
Overview
Construction of the Candle Line
Power of Single Candle Lines
Insights of the Candle Patterns
Forex and Non Forex Candle Patterns
Blueprint for Forex Trading Success
East meets West
U i Intraday
Using I t d candles
dl
Money management
Trading Psychology
The Candlestick Screener
Screener™
™
1
Constructing the
Candlestick Line
high Shadow
close open
Real
Bod
Body
open close
low
Real Bodies / Shadows Doji
ask@candlecharts.com tel:732.254.8660
2
Bulls vs. Bears
Th Real
The R l Body
B d is
i the
th Essence
E off the
th Price
P i Movement
M t
Who’s in control?
ask@candlecharts.com 732.254.8660 USA
3
Small Real Bodies
(
(spinning tops))
C
Criteria Small real body – color
S
not important
Implication Prior trend is losing
force
o ce

4
What does this bar chart say?
Holding the highs very

well so looks fine
Chart courtesy
y of Genesis FT

5
Now what does this candle chart say?
Does the market still

look fine?
Chart courtesy
y of Genesis FT

6
And what happened after ….
Chart courtesy
y of Genesis FT

7
Spinning Tops
Chart courtesy
y of Genesis FT Although
g descending,g, the small real
bodies offset some of the negative
outlook
8
Doji
Criteria: Open and close are the same

Implication: Market is “tired”

9
Doji
Chart courtesy
y of Genesis FT

10
Spinning Top and Doji
If a spinning top is small
GBP/$ enough we can view it as
a doji

11
Doji compared to spinning tops in FX

12
Non Forex Doji
Which of these
scenarios is a more
likely top reversal?
S
Scenario
i 1 S
Scenario
i 2
13
Doji in Forex

14
Doji

15
Doji
Chart courtesy
y of Genesis FT

16
Doji as Resistance
Criteria: Use the highest

high of those two sessions
(top of upper shadow) as
resistance
Implication: Close over that
area: market is “refreshed”

17
Doji as Resistance

18
Doji as Resistance

19
Nison Trading Principle #6
A candlestick line or pattern

requires two criteria:
• The shape of the line or pattern
• The preceding trend
nison@candlecharts.com 732.254.8660 USA

20
Doji and Trend
Concept:
C t Doji
D ji in
i a “Box
“B Range”
R ” is
i
To use a northern doji as not a trading signal
a signal we need to have
p
an uptrend to reverse

21
Candles in Context of Trend
Isn’t this doji in a trading range?
Chart courtesy
Chart
y of
courtesy
Genesis
y ofFT
Genesis FT

22
Shadows
S ado s
Remember: location and size of the shadow should be

considered when analyzing the market psychology.
Implication: Bearish long upper shadow offsets “rallying

strength.” Bullish long lower shadows hints bears losing
force. 23
Bullish Shadows
Chart courtesy
y of Genesis FT

24
Bearish Shadows
Chart courtesy
y of Genesis FT

25
Bearish Shadows
Chart courtesy of Genesis FT

26
Hammer
Criteria:
• Small real body at,
at or near top,
top of range
black or white
• Lower shadow at least 2x real body
• Market in down trend
Implication: ‘Groping
Groping for a bottom
bottom”

27
Hammer
Will often retest lower shadow

Chart courtesy
y of Genesis FT

28
Hammer as support
Chart courtesy
co rtes of Genesis FT

29
Hammer as support
Chart courtesy
y of Genesis FT

30
Shooting Star
black or white
Criteria:
• Small real body at,
at or near bottom,
bottom of range
• Upper shadow at least 2x real body
• Market in an up trend
Implication: ‘Signaling
Signaling Trouble Overhead”
Overhead

31
Shooting Star - Hammer

32
Shooting Star as resistance
Chart courtesy
y of Genesis FT

33
High
g Wave Candles
d s
Criteria: very long shadows and lower

small real body - color not important
Implication: Trend is losing force

34
High Wave Candles
Did the Euro have a

sense of direction?

35
The Checkmate Principle
p
Bearish Checkmate:
A series of tall white candles followed by black
candles or small real bodies near the same
resistance level. It reveals that the bulls’ drive is
being “checkmated”
Bullish Checkmate:
A series of long black candles followed by white
candles or small real bodies near the same
support level. It reveals that the bears’ drive is
being
g “checkmated”
36
Bull Checkmate 1 of 2
☺ Chart courtesy of Genesis FT

37
Bull Checkmate 2 of 2
Checkmate area
☺ ☺
Chart courtesy
y of Genesis FT

38
Bullish Engulfing Pattern
Criteria:
• White real body wraps around
preceding black real body
•Implication:
p c o : Market
e bottoming
bo o g out
ou
open
open
close

39
Checkmate area
Chart courtesy
y of Genesis FT

40
Ch t courtesy
Chart t off G
Genesis
i FT

41
Bullish Engulfing Pattern as Support

42
Chart courtesy
y of Genesis FT

43
Bearish Engulfing Pattern
open
close open
Criteria:
•Black real body wraps around
preceding white real body
•Market in up trend
Implication: ‘Bulls
Bulls have been
constrained”
44
Chart courtesy
y of Genesis FT

45

46
Bearish Engulfing Pattern as Resistance
Chart courtesy
y of Genesis FT

47
Engulfing Patterns compared to Outside Reversal
Chart courtesy
y of Genesis FT

48
Engulfing Patterns – Compare Real Bodies

49
Engulfing Patterns
Bullish Bearish

50
Both are Bearish Engulfing

51

52
Bullish Engulfing Pattern as Support
Chart courtesy
y of Genesis FT

53
Non Forex Dark Cloud Cover
Criteria:
• Opens above prior high (or close)
• Black real body closes deeply into prior
long white candle
• Market moving north
Implication: “Advance
Advance is exhausting
itself”

54
Forex Dark Cloud Cover
Criteria:
• Opens at (or within few pips) of prior
close
• Black real body closes deeply into prior
long white candle
• Market moving north
Implication: “Advance is exhausting

itself”

55
Dark Cloud Cover as Resistance
Weekly
Weakly
Chart courtesy
y of Genesis FT

56
Dark Cloud Cover
Not dark cloud covers
Chart courtesy
y of Genesis FT

57
Dark Cloud Covers

58
Dark Cloud Cover
Close – open 1 pip
Didn’t get
g
deeply into
white candle

59
Non Forex Piercing Pattern
Criteria:
• Market moving south
• Opens below prior low (or close)
• White candle closes more than halfway
into prior long black candle
Implication: “hint that the

decline is exhausting itself”

60
Forex Piercing Pattern
Criteria:
• Market moving south
• Opens at (or near) prior close
• White real body close more than
halfway into long prior black candle
Implication:
li i “hi
“hint that
h the
h d
decline
li iis
exhausting itself”

61
Piercing Pattern
Not a piercing
pattern
Piercing pattern
Chart courtesy
y of Genesis FT

62
Piercing Pattern Confirming Support

63
Piercing Pattern as Support
Chart courtesy
y of Genesis FT

64
Confluence of Candles
c
d
Chart courtesy
y of Genesis FT e

65
Non Forex Harami
Bearish
i
white or black
Criteria:
• First candle is unusually long white or
• Second real body spinning top or doji black
• Second real body within prior real body
• Second real body can be black or white Bullish
66 Implication: ‘Change in flow of market”
Forex Harami
Bearish
i
black real body
Criteria:
• First candle is unusually long
white
• Second real body spinning top or doji
• Second real body within prior real body
• Second real body opposite color Bullish
67 Implication: ‘Change in flow of market”
Bear Harami
Not harami
Chart courtesy
Chart ycourtesy
of Genesis
y of Genesis
FT FT

68
Harami confirms resistance
Ch t courtesy
Chart t off G
Genesis
i FT

69
Bull Harami

70
Bull Harami
Chart courtesy
y of Genesis FT

71
Harami
Bearish
Bullish
72
Non Forex Morning Star
Criteria:
• First candle long black
• Second
S d reall b
body
d ((spinning
i i ttop, blblackk or
white) doesn’t overlap first session’s real
body
• Third candle ((white)) closes deeply
p y in
first black real body
Implication: Bulls are taking control
white or black
73
Forex Morning Star
Criteria:
• First candle long black
• Second
S d reall b
body
d iis bl
black
k or d
doji
ji
• Third candle (white) closes deeply in
first black real body
Implication: Bulls are taking control
Most
time
black
or doji
74
Morning Star Confirms Support
Chart courtesy
y of Genesis FT

75
Non Forex Evening Star
white or black
Criteria:
• Market in an up p trend
•First candle is long white
• Second real body (black or white
spinning top) doesn’t overlap first
session’s real body
• Third candle (black) closes deeply in
first white real body
Implication: Bears are taking control
76
Forex Evening Star
Most time
white
hit or
doji
Criteria:
• Market in an up p trend
•First candle is long white
• Second real body is white spinning
top or doji
• Third candle (black) closes deeply in
first white real body
Implication: Bears are taking control
77
Evening Star
Chart courtesy
y of Genesis FT

78
Evening Star
Chart courtesy
y of Genesis FT

79
Evening Star Variation
Bear Engulf
Near
resistanc
e–
would
you sell
short?
Chart courtesy
y of Genesis FT

80
Evening Star as resistance area

81
Don't
on't ever forget risk
risk-- reward
If…Then system
Stops:
p Always
y use
Candles in Context
Intra--day candle charts
Intra
Pace trades to market environment
L t go off emotions
Let ti
Indicators: The more the better
Never trade without an eye to news
Examine how market acts at support/resistance
82
Slide 34
DISCIPLINE:
Your Blueprint for
Forex Trading Success
83
Don
Don't
on't
on t ever forget
risk-- reward
risk
84
Even a “perfect”
perfect candle signal
does not equal a good trade!
YOU MUST ALWAYS JUDGE
THE POTENTIAL TRADE’S
RISK-REWARD

85
Hammer confirms support/but what about r/r?

86
Risk/ Reward

87
Morning Star but ????
Chart courtesy
y of Genesis FT

88
Risk – Reward
Let’s
Let s think about this R/R
Chart courtesy
y of Genesis FT

89
If..Then system
90
Don’t Stay Around
Target
What are you doing hanging

g
around! You’re wasting
precious resources.
Hammer and Bull Engulf
Chart courtesy
y of Genesis FT

91
Stops: Always use
92
Stops 1 of 2
Where is the stop?

93
And what happened after 2 of 2
What if
it went
to
here?
Would
you
still
want
to be
short?

94
Setting Stops w/o waiting for close
Shooting star close = 121.92

Target = 121.64
Potential reward 28 pips
Shooting star
For 2:1 reward risk = risk 14 pips
confirms
Shorted 121.92 + 14 pips =
Intraday stop 122.06 resistance
Target

95
Indicators: The more the
better
96
The more signals - either candles

or Western or a combination of
both – converging at the same
level, the more likely a reversal

97

98
Chart courtesy
y of Genesis FT

99
Western Tools
Trend lines: The Candlestick Screener™

Screener™
Change of Polarity
Crack and Snap/Falling Off the Roof
Price Targets
Oscillators
Bollinger Bands
Fibonacci Retracements
Record Sessions
100
Confluence

101
Examine how market
acts at support or
resistance
i t
102
The Candlestick
Screener™
Using candles at support or

resistance to screen for the best
probability trades
103
Using the Candlestick Screener™
Screener™ 1 of 3
Is the market at resistance?
Are there any reversal signals?
Chart courtesy
y of Genesis FT

104
Screener™ 2 of 3
Is the market at resistance?
Are there any reversal signals?
Chart courtesy
y of Genesis FT

105
Screener™ 3 of 3
Chart courtesy
y of Genesis FT

106
The Candlestick Screener™
Chart courtesy
y of Genesis FT

107
Using candles to enter vs. exit
Doji
Hammer

108
Candles to exit or adjust stops
Chart courtesy
y of Genesis FT

109
Change of Polarity
Congratulations – you
bought at support!
Congratulations? –
you bought at
support?
110
Change of Polarity
Resistance
Resistance
Support
Support
111
Change of Polarity
Resistance
Support zone
becomes …
Chart courtesy
y of Genesis FT

112
Internal trend line

113
East and West = Increased Confidence
Doji
Prior support
becomes new
resistance

114
Crack and Snap
Target
Snap
Buyy
Stop
Crack
115
Falling off the Roof
Stop
Sell
Target
g
116
Crack and Snap
target

117
Falling off the roof!

118
Candlesticks do not give price targets.

119
Candles and price targets
Doji
confir
ms
resista
nce
Chart courtesy
y of Genesis FT

120
Change of Polarity and Measured Moves

121
Western Techniques for Targets

122
West for Targets
Chart courtesy
y of Genesis FT

123
Head and Shoulders
Head Right
g t
Left
f Shoulder
S Shoulder
Neckline
Sell
signal
Head and Shoulders Top
124
Three Buddha Pattern
125
Applying Western Techniques to Candle Charts
Neckline
LS
RS
Head

126
East and West: West for Targets 1 of 2
April 6

127
West for price targets - East for confirm 2 of 2
Target
Piercing pattern

128
Oscillators
Â Objective
Â Separate from price
Â Best in lateral markets
Â Includes Stochastics, MACD,

RSI, etc.
129
Applications
Â Overbought/Oversold:
too far too fast?
Â Divergence
130
Candles in Context of Overbought/Oversold
At which doji is the market more vulnerable?

131
Divergence
Positive Divergence Negative Divergence
2
1
1
2
Price Price
1
2
2
1
Oscillator Oscillator
132
East & West
Hammer
and
positive
divergen
ce

133
East and West

134
Candles and Oscillators

135
Oscillators and Trend

136
East and ……

137
East and West (Bollinger Bands)

138
Bollinger Bands
Bearish Engulfing Pattern Shooting star
Doji, bear shadows
Chart courtesy
y of Genesis FT

139
East & West
Doji warn
market is
tired.
Confirming Correction
resistance at ends with
upper piercing
Bollinger pattern at
Band lower
Bollinger
Band

140
Dual Bearish Candle Signs & Divergence
Bearish
i h
Shooting Star engulfing
pattern
Both patterns
confirmed upper
Bollinger Band

141
Fibonacci
Retracements
(B) 200
38.2% (162)
50% (150)
% ((138))
61.8%
((A)) 100
$100
142
Candles & Fibonacci
Dark cloud cover Gravestone

doji
Hammer
Hammer
confirming 50%
confirming 50%
retracement
retracement
Bullish
lli h
engulfing
pattern

143
Fib. Retracements with Candles
Chart courtesy
y of Genesis FT

144
Fib. Retracements
Bull Engulf near 62%
Hammer
Chart courtesy
y of Genesis FT

145
East, West & Fibonacci
Bearish
engulfing
pattern
confirming
upper Bollinger
Band
Bullish Harami
Support
at 50%
Fib
retracem
ent

146
Candles in Context
147
Candles in Context
Morning star
but ???
Ch t courtesy
Chart t off G
Genesis
i FT

148
Candles in Context
Why not sell at this doji?
Chart courtesy
y of Genesis FT

149
Candles in Context
Whata are
a
2 reasons
not to
short on
this
shooting
star?
Prior resistance converts to new support

150
Candles in Context 1 of 2
Did the Euro have a

sense of direction?

151
Candles in Context 2 of 2
O
Oversold?
ld?
Oversold?

152
Record Sessions
Overbought / Oversold Indicator
9 record session highs 9

8
7
6
5
4
3
2
1
low for move

153
Record Session Highs
89
7
6
5
3
2
Chart courtesy
y of Genesis FT

154
Record Session Lows
8 9
7
1
2 1
23
6 3
4
5 Haven t made
Haven’t
5
a lower low
4 and now
relieved
3
1 1
2 potential
2 oversold
3 4
situation so
5
6 count starts
7 again
8
9
10

155
Intra
ntra--day candles
156
Intraday Candlesticks
Flexibility
y
157
Flexibility with Candle Signals
close open
Chart courtesy
y of Genesis FT

158
Intraday Traders:
Daily
D il Charts
Ch t ffor S
Supportt
or Resistance
159
Daily Chart for Support/Resistance 1 of 2
Daily Chart
We are thinking of
buying on the session
at the arrow as
market approaches
important support
near 137 on Feb. 27.
Let’s turn to an intra- Feb. 27
day chart to see if
137.07
there are any buy
signals as the
Euro/Yen cross nears
ask@candlecharts.com this USA
732.254.8660 level ….. (see next
160
chart).
… and then use daily support/resistance on intraday chart 2 of 2
Intraday Chart
Target Zone
Piercing Pattern 137 07 from daily chart

137.07
Feb. 27
Chart courtesy
y of Genesis FT

161
Melding Daily Support/Resistance onto Intraday Candle Chart 1 of 2
Daily Chart
Support zone on this daily chart. Now we shift

to Intraday candle chart for June 5

162
Melding Daily Support/Resistance onto Intraday Candle Chart 2 of 2
Intraday Chart
Potential
Target
Support Zone from Daily Chart

163
Support / Resistance from Daily Chart ….. 1 of 2
Resistance zone
Chart courtesy
y of Genesis FT

164
…… placed on intraday chart 2 of 2
Resistance zone
From daily chart
Potential Targets
Chart courtesy
y of Genesis FT

165
Trade Intraday? Still have to monitor daily chart 1 of 2
Intraday
Why did the rally stall

near 1.297
1 297 on JJune 5?
Chan
ge of
polarit
y for
buyin
g
Chart courtesy
y of Genesis FT

166
Always know support/resistance on daily/weekly charts 2 of 2
Daily
June 5
Note important resistance here!
Chart courtesy
y of Genesis FT

167
Swing Traders:
Intraday Candlestick
Charts to Improve Timing
168
Why Intraday – even if you are not a day trader 1 of 4
On this daily chart April 3 is

a hammer testing support at
a piercing pattern, but when
is hammer completed?
Wh t about
What b t risk/reward?
i k/ d?
Chart courtesy
y of Genesis FT

169
April 3 - 60 minute
Chart courtesy
y of Genesis FT

170
April 3 - 30 minute
Chart courtesy
y of Genesis FT

171
Buy on close?
Intraday buy
Chart courtesy
y of Genesis FT

172
Intraday for Early Reversals
Stop
Daily 60 minute Signal at 123.20
Close on April 6
Short at 122.29?
122 29? Or
Signal
at
123.05
Target
April 6

173
Swing Traders:
Intraday Charts to Confirm
Support or Resistance
174
Harnessing the Extra Insights of Intraday Candles 1 of 2
How can we tell if this bullish

engulfing pattern
on May 17 was a successful
retest of support?

175
Harnessing the Extra Insights of Intraday Candles 2 of 2
60 minute May 17 30 minute May 17 15 minute May 17

176
Intraday and Swing Traders:

Multiple Intraday Time
Frames
177
Using Intraday Charts to Get Earlier Reversals 1 of 2
Morning Star
P tt
Pattern confirmed
fi d
July 19 at 1.2593,
now let’s
Chart courtesy
y of Genesis FT go to intraday
g y ….

178
Using Intraday Charts to Get Earlier Reversals 2 of 2
15 minute July 19 30 minute July 19 60 minute July 19
Hamm
a Morning Star Piercing Pattern
er completed completed
comple at 1.2488 at 1.2488
ted
at
1.2481

179
Never trade without
knowing about news
180
The water looks fine…. 1 of 2

181

182
Let go of emotions
183
Long Lower (Bullish) Shadows
Although this market is

descending, the long
lower shadows lessens
some of the negative
outlook
Chart courtesy
y of Genesis FT

184
Non Emotional Trading

185
Pace trades to market
environment
186
Market Chameleon: As market

environment changes we must
adapt
p our market outlook
and stance

187

188
Be a Market Chameleon 2 of 2

189
Adapting to the Market 1 of 4
What is this pattern?
What is potential 1st support?

190
1) What is potential 1st support?

2) Any bull candle signals?

191
potential
target
How about here?

192
potential
target

193
Adapting to Changing Market Conditions 1 of 3
S1
S2*

194
S1*
Anything new?

195
S1
S1*

196
Being a Market Chameleon 1 of 3
Stop
Short
Target
g

197
Target
Anything happening
to change your
outlook?

198

199
Achieve PEAK
Trading performance!
Information is Power!
Learn how to avoid losing
Forex trades
200
Slide 52
W
Warren Buffet’s
B ff t’ Rules
R l off
Money Management
Rule 1 – Not to lose money
Rule 2 – Don
Don’tt forget rule 1
201
Achieve PEAK
Trading performance!
Pinpoint Forex turning

signals with razor sharp
accuracy
202
Early Reversals
Chart courtesy
y of Genesis FT

203
Why Candles – First for Reversals!
Chart courtesy
y of Genesis FT

204
Candlestick Western
Ch ti
Charting Charting
Techniques Techniques
The Trading Triad®
Money Management
205
Steve Nison’s Profiting in Forex:
Using Candlesticks to Catch
the Next Move
Special Bonus:
Ste e Nison’s
Steve
Forex Trading Lab
with
St
Steve Nison,
Ni CMT
President: Candlecharts.com
Tel: 732-254-8660 Fax: 732-390-6625
Web site: www.candlecharts.com
www candlecharts com
E–mail: ask@candlecharts.com
Case Study 1
What 3 signals hint of a

reversal?
Pause Now- Resume when done

Chart courtesy
y of Genesis FT
1
Case Study 1 – Answer
doji and bear harami

bearish
engulf
Chart courtesy
y of Genesis FT
2
Case Study 2 – Part 1
A- What are the three candle

signals at 1?
B-What
B What else warned of the
market stalling at area 1?
3
Case Study 2: Part 1 – Answer
A-What are the three candle

signals at 1?
S i i
Spinning T
Top
Doji
Harami
4
B-What else warned to the

market stalling at area 1?
Resistance area
5
Case Study 2: Part 2
What is the candle signal at

2?
Anything else to get us
nervous?
6
What is the candle signal at 2?

Shooting Star
Anything else to get us nervous?
Failure to hold over
resistance
7
Is 3 a hammer?
8
Is 3 a hammer?
3 No, the upper shadow is

No
too long.
But what pattern does 3
complete?
Bull Harami
9
What pattern is 4?
10
What pattern is 4?
None- trend is wrong
11
What pattern is 5?
12
What pattern is 5?
13
Case Study 3
1
2 3
What candle
indicators were
there at 1-4?
14
1
2 3
1-Two shooting stars

2- Bear Harami
3-Bearish Engulfing
4-Falling off the Roof
15
Case Study 4
What are
the signals
hinting of
trouble?
16
4 What are
the signals
hinting of
trouble?
1 2
3
1- doji and harami
2- bearish engulfing
3- bearish engulfing
4- resistance
17
Would you sell at 3?
18
Would you sell at 3?

N since
No, i it is
i att supportt
3 We could here
19
Case Study 5
1.What reversals
are here?
3. Reasons
for caution
here?
Fibonacci Retracements
2.What pattern
Chart courtesy
y of Genesis FT
20
Bear shadows and

High Wave
small real bodies
Bearish Engulfing
Pattern
Chart courtesy
y of Genesis FT
21
Piercing Pattern
What pattern
Chart courtesy
y of Genesis FT
22
1- 50% Fib retracement

2- doji
3- harami
4 esistance area
4-resistance a ea
Reasons for
caution here?
3 4
1
Fibonacci Retracements 2
Chart courtesy
y of Genesis FT
23
Case Study 6
1. What
1 Wh 3. What is happening
candle signals here regarding bull
warn of force? 5. Any
trouble? reason
for
caution?
4.a)Is this a
piercing
2. Why are these pattern?
h
hammers likely
lik l tto b) Would you
work? buy here?
Chart courtesy
y of Genesis FT
24
1. What
1 Wh t
candle Two dark cloud covers
signals warn
of trouble?
Chart courtesy
y of Genesis FT
25
2. Why are these

h
hammers likely
lik l tto
work?
Chart courtesy
y of Genesis FT
26
3. What is happening
here regarding bull
force?
Spinning Tops
Chart courtesy
y of Genesis FT
27
a) No, since the

white candle
didn’tt get more
didn
than half into
black real body
b) Yes – confirming
support area
4.a)Is this a
piercing
pattern?
b) Would you
buy here?
Chart courtesy
y of Genesis FT
28
5. Any
reason
for
caution?
1- Harami
2- Falling Resistance Line
Chart courtesy
y of Genesis FT
29
What would you do?
Chart courtesy
co rtes of Genesis FT
30
What would you do? – Answer
This is a
bullish
engulfing
pattern, but
l t’ look
let’s l k att
R/R
Chart courtesy
y of Genesis FT
31
What would you do?
1) Would you buy at the

arrow?
2) Where is your stop?
3) Where
Whe e aree some
ome target(s)
t get( )

32
1) Would you buy at the

arrow?
2) Where is your stop?
3) Where
Whe e aree some
ome target(s)
t get( )
1: Bull Engulfing
Pattern at Support
2: Bull Engulfing
Pattern low
33
What would you do?
Assume you
are flat.
What would
you do?
Hint- look at
prior lows.
34
Crack and snap
35
What would you do?: Part 1
Shooting star

36
What would you do? Part 1 – Answer
Shooting star
Ch t courtesy
Chart t off G
Genesis
i FT
37
What would you do? Part 2
Shooting star
What pattern is this?
Pause Now- Resume when done Ch t courtesy

Chart t off G
Genesis
i FT
38
What would you do? Part 2 – Answer
Evening Star
Do nothing due to poor R/R
Ch t courtesy
Chart t off G
Genesis
i FT
39
What would you do?
Hint: Also look at May highs
40
R2
R1
Above R1, but at R2- so do nothing
41
What would you do? – What followed
42

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Steve Nison’s Profiting in Forex :

Using Candlesticks to Catch the Next Move

Real Bodies / Shadows Doji

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Holding the highs very

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Does the market still

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Criteria: Open and close are the same

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ask@candlecharts.com 732.254.8660 USA

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Criteria: Use the highest

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ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

A candlestick line or pattern

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Isn’t this doji in a trading range?

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Remember: location and size of the shadow should be

Implication: Bearish long upper shadow offsets “rallying

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ask@candlecharts.com 732.254.8660 USA

Chart courtesy of Genesis FT

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Will often retest lower shadow

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ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

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Chart courtesy of Genesis FT

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Criteria: very long shadows and lower

Implication: Trend is losing force

Did the Euro have a

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☺ Chart courtesy of Genesis FT

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ask@candlecharts.com 732.254.8660 USA

Chart courtesy of Genesis FT

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ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

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ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

ask@candlecharts.com 732.254.8660 USA

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Steve Nison's Profiting in Forex

Steve Nison's Profiting in Forex