Common Candle Mistakes - CMT Association · Presented by Steve Nison,CMT CEO and Founder :...

Presented by Steve Nison,CMTCEO and Founder : Candlecharts.com

Common Candle Mistakes A special presentation for the MTA

CANDLES GIVE YOU TWICE THE INFORMATION AS A BAR CHART

Who’s in control?

Who’s in control?

Common Mistake

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Long Upper Shadows


Long Lower Shadows

Common Mistake


Importance of Trend

NOT a bullish engulfing pattern


This is interesting: I recently purchased a

technical analysis package from a “WELL

KNOWN” technical analysis

guru. …During a strong uptrend, he called a

large white real body after a small black real

body a bullish engulfing pattern. If I hadn’t

bought and studied your education , I

would never would have known that and

would have assumed that he was right. And

could have lost a lot of money!

Thanks again for your great work!

-Carl

Is it a valid Candle Signal?

Not a Bullish Engulfing Pattern!

Common Mistake

Taguri candlestick

A chance to buy at the bottom

A Taguri is a candle with a bottom shadow. It is almost the same as other candles with bottom shadows that we have talked about, but here the white body is small, and the bottom shadow is relatively long. If this occurs after a decline (or when prices are low) it is considered a strong candle, and hints of a bottom. This is to say that it’s a selling climax, where the bears sold their shares, there was an interruption in the selling, and the stock rebounded to the main body of the candle. So with no more selling coming, buying here will not lead to a loss in the intermediate or long term, and the price has likely formed a bottom.When looking at the charts, this type of taguri candle appears frequently near bottoms or after the market has gone flat after a bottom.You can say that the buyers in the market have become stronger than the sellers, or you can say that the bears have done all of their selling, and the market recovered with only a little buying. The market is headed to higher values because this is indicating a change in balance between buyers and sellers.So if you see this candle, if you survey other conditions and then you buy, you can’t go wrong.

Trend Overbought/OversoldImproving %s

Trade Management Psychology

behind the pattern

Candles in Context

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Is this doji telling us there is something

different about the market?


Doji candles in context


The Multiplier Effect

Where a Nison candle signal confirms another

indicator


East + West = Higher Confidence

Hammer atSupport


East + West

Falling window


Volume

Higher volume on white candle

compared to black on this bullish

engulfing pattern magnifies the

likelihood of a reversal


“Box Range” targets

target

target


Box Range targets


Using Measured Moves

Common Mistake

Going in the direction of Breakout

Momentum Trading


Use the highest high of

those two sessions (top

of upper shadow) as

resistance

www.activeinvestorblueprint.com

Doji as resistance

breakout

Candlestick Charting

Techniques

Candlesticks +Western

Indicators

Candlesticks + Trade Management

Common Mistake

A candle signal – even if it confirms other indicators – is not enough of a reason for a trade. You must always consider risk/reward


Which is a better

trading signal?

Bearish engulfing pattern

Shooting star


Waiting for time to ripen

Classic bearish

engulfing pattern:

But what about

risk/reward aspect?


Classic Hammer at Support but…


Great signal but poor R/R

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Bull Separating Line

Why I went long:

1) Bullish engulfing at

support

2) Trend line breakout of price

Was this a good trade that just didn't work out or did I make a mistake in judgment that I can't see?

Thank you,Gary B

Nison Insider Access - Sample Question

Support

Bullish engulf


Resistance

Closed overResistance-Do you buy?

1) What bullish candle signal is this?2) Based on this signal would you Buy? Why or why not?

Candles in Context

Special Pricing and Bonuses END Sunday Dec. 4

Questions?

[email protected] access automatically discounted- No special code needed

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Extra Bonus- if you can choose the monthly plan, and then decide on lifetime within first month, you will get full credit from that month applied to the lifetime.

Common Candle Mistakes - CMT Association · Presented by Steve Nison,CMT CEO and Founder :...

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Transcript of Common Candle Mistakes - CMT Association · Presented by Steve Nison,CMT CEO and Founder :...