Vol 4 Handouts Opt 3

8/9/2019 Vol 4 Handouts Opt 3

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S tev e N i s o n s C a n d l e s t i c k s R e -Ig n i ted A d v a n c e d Wo rk s h o p :

A d v a n c e d We s te rn a n d T ra d e Ma n a g em e n t w i th C an d l e s t i c k s

Volume 4 of the Nison Educational Series

www.candlecharts.com

Advanced

Western

Technical Tools

Founder and President: Candlecharts.com 212

Candlestick

Charting

Techniques

Western

Charting

Tools

Trade Management

213

214


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2

Enhance winning %s

Using candles fornew trade

Price targets

Western Technicals

215

A candle signal is normally not a

sufficient reason for a new trade

216


East + West Confirmation

Where a candle

signal confirms a

Western technical

signal

217


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East + West = Greater Winning %

218


Candles plus..

219


Candles plus Bollinger Bands

220


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Crack and Snap with Volume

The arrow points to a Snap and Crack. Whatdoes volume do to increase the likelihood of thistechnique working?

224

www.candlecharts.comFounder and President: Candlecharts.com 225

www.candlecharts.com 226


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Candles and the ADX:The Perfect Fit

Candles and the ADX:The Perfect Fit

227


Stands for Average Directional Indicator

Shows how strongly a market is trending

Does not show direction of trend

228


Strong ADX with

prices in up trend. Strong ADX with

prices in down trend.

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1

2230


Some technical indicators, such as movingaverages,momentum trading, work better in strongly trendingmarkets.

Some technical indicators, such as oscillators, workbetter in non trending markets.

Traders check ADXto see if the technical indicatorthey use is in right trend environment

231


Use onlyon daily chartsexceptfor FX

Use only forentries

Lagging indicator

Slow torecognize a new trend

232


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Steve-

Apple has recently gone from 120 to 150 and the ADX on a daily basishas not moved up. This is surprising. Comments? - Pete

233

Common mistake- lookingat ADX level.

Slope is the key

Slope=change in ADX fromyesterday to today.

(todays ADX level-yesterdaysADX level)

Greater the slope, strongerthe trend

234


-.31

ADX at 20.64.

What do we need to

determine the slope

on this day?

ADX at20.96

Slope = 20.64-20.96 = -.32

ADX 22.04

ADX 24.11

Slope = 24.11-22.04 =+2.07

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14 Period

ADX slope

increasing

.5 or more

ADX:22.38

ADX:20.30

ADX:26.03

Slope = +2.08

What is the slope?

Strong uptrend?

ADX:27.56

236


Minimum:

14 Period

ADX slope

+.25 or

less

ADX:18.57

ADX:18.26

-.31

Strict: 14Period

ADX slope

decreasing

237


[email protected]

238


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Candles and ADX - The Perfect Fit

Reversal candleshelp pick top andbottoms.

Increase % by notgoing againststrong trends.

239



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?

241


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Minimum:14 Period

ADX slope

.25 or less

Strict: 14

Period

ADX slope

decreasing

-.10-.40

242


Bull shadows on descent. But

based on ADX which of these is

more likely a turn?

ADX slopes

2.24, 2.53, 2.67

Why didnt I

put ADX

numbers for

these?

243


ADX : 27.98

What candle patterns are at

the dashed arrows?

What is the ADX telling us?

ADX : 30.38

ADX : 31.80

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ADX:18.57

ADX:18.26

-.31

Strict: 14

Period

ADX slope

decreasing

+.95

Minimum:14 Period

ADX slope

+.25 or

less

245


Slope +.97

246


FOR BEAR CANDLEREVERSAL SIGNALS

Step 1 get candlesignal

Step 2 ADX showsuptrend easing orno trend:

ADX slopeincreases by

less than .25,and better ifslope isnegative

ADX:42.85

and 41.02

so slope is

-1.83

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FOR BULL CANDLE

REVERSAL SIGNALS

Step 1 get candlesignal

Step 2 ADX showsdowntrend easing or no

trend:

ADX slope increases

by less than .25, and

better if slope is

negative

ADX:

1-31.97

2-32.67

3-32.48

4-32.45

5-32.53

6-30.23

1

2

34

5

6

248



Gravestone doji at resistance

After the gravestone

where is a potential

target?

250


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Candles for reversals and Western for targets

Bearish engulfingpattern at top of bullchannel

target

251


First

leg

target

Swing TargetSwing Target

252


East and West

Doji as signal to exit

253


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Becoming a Confident Trader

254


Head and ShouldersHead and Shoulders

Neckline

Left Shoulder Right

Shoulder

Head

Head and Shoulders Top

Sellsignal

255

Three Buddha Pattern

256


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We got the reversal here with

candles .

Compared to here with

a classic western signal

Why we are here!

257


1

2 3

Old support

becomes..

New resistance

How Education Saves You $$$$

1- Bear Harami2- Dark Cloud Cover3- Bearish Engulfing Pattern

258

neckline Interview

Head andShoulder top

T ASC Int erview - Jan. 24, 2003 S&P at 860

the heads and shoulders top on theS&P gives a target to near 775. A closeover 870 would void this. Hammer

1) Once the necklinessupport i s broken, itshould becomeresistance.

2) To get a target with thehead and shoulders topwe measure from the topof the head to theneckline.

259


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STEVESFAVORITE

MEASURING TACTIC

260


Box Range BreakoutBox Range Breakout

261


Box range breakout

Harami with

target bottom of

box

262


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Box range Breakouts

263


East & West = Profits

264


Box range Breakout/ momentum trading

265


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Scenario1

Scenario2

The Tools of the West with

the Light of the Candles

The Tools of the West with

the Light of the Candles

267


The Nison Candlestick ScreenerThe Nison Candlestick Screener

Using candles at support or resistance

for the high probability trades

268


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Question 1- Is the market at support or resistance?

Question 2- Are there any reversal candles?

Question 1- Is the market at support or resistance?

Question 2- Are there any reversal candles?

Two simple questionsTwo simple questions

The Nison Candlestick Screener

269



270



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1) Whos in control duringthis ascent?

2) What is thiscandle linehinting?


272


Major resistance 2.00-2.01


273


Long term resistance zone

1) Is the at resistance?

2) Are there any candle signals

showing hesitation?

How education saves you $$$$

274


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The Value of Owning the Knowledge

Long term resistancezone

275


The Value of Owning the Knowledge

276



277


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Near support?Any reversal signals yet?


278



279

Market refreshed


Near resistance?Any reversal signals yet?

280


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Using Measured Moves including:

Box range

Head and Shoulders

Swing Targets

The Candlestick Screener

281



What are Sectors?

Technically analyze sectors like any other market

Cant trade sectorsso why are sectors important to traders?

283


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Candles and Sectors

284


Why are Sectors important

Sectors account for 37-60%

of an individual stocks performance

This means you need to know what the sector is doing!285


Bottom Up: Stock to Sector

Top Down : Sector to Stocks

Bottom Up: Stock to Sector

Top Down : Sector to Stocks

How can we use Sectors?

286


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Bottom Up Sector Analysis

290


Biotech Sector

AMGN Sept. 11Buy ?


291


Sept.11

Buy


292


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e ng up scann ng pages orNison Sector Analyses

294


Scanning with Nison Candle Sector Analyses

STEP 1 Scan Sectors

Aug. 16

Internets Banks Biotech

Gold- Silver Semis Retail

295


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ETFs

Track All Major Sectors and Indices Track All Major Sectors and Indices

Can Trade ETFs Can Trade ETFs

Popularity/Liquidity Popularity/Liquidity

Exchange Traded FundsExchange Traded Funds

299


Golden and Dead Crosses

Dark cloud confirming resistance

Hammers

Bullsash

patterns

Analyze and Trade ETFs like any other mark et

300


n ows an s

301


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Sectors Important for stocks

Can analyze with candles

Bottom up trading

Top down to filter

Scan for best sectors

Fin d best stocks in those sectors

Analyze those stocks

ETFs Ability to trade sectors

Instant diversification

302



3

Market Chameleon

Candles in Context

Risk-reward

Exit Strategies

Trade Management

304


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Being a Market Chameleon:As market conditions change,

adjust your market stance.

Adapting to the Market

305



Looks good

anything

different?

306



Target

307


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Adapting to the market

Wheressupport?

Wheres

supportnow?

311


Become a Market Chameleon

Bear

Stearns

Collapse

312


Candles in Context

Analyzing candle

signals within the

context of

surrounding

technical picture

313


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Misinformation can cost you $$$

?

314


Same Signal- but how different the strategy!

315


Which is a Better

trading signal?

316


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Dark Cloud Cover

Bearish

Engulfing

Pattern

Candles in Context

317

Which is a bettertrading signal?

Hammer Morning Star318


Hammer

Morning Star

Candles in Context

319


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1. What is your price risk?

2. What is your target?

Do you have agood

risk-reward?

Always Check Risk Reward

320


Risk/Reward

321


Waiting for time to ripenClassic bearish

engulfing pattern:

But whatabout

risk/reward aspect?

322


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Slide 115

The race is not always to theswiftest, but to those who keeprunning.

326



Protective Stops keep you in the game!

Looks

promising at

the white

candles

328


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Hammer

Closed under support

How Education Saves you $$$$

329


Hammer

How Education Saves you $$$$

330

Exit Strategies

Protective Stops

Time Stops

Trailing Stops

SteveNi sonsCandlecharts.com 331


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Youre Wasting Resources

335



Trailing Stops

As the market movesin your direction stop is adjusted tohelp ride the trend.

337


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Golden and Dead CrossesCompares two moving averages

GOLDEN CROSS: shorter crosses above longer DEAD CROSS: shorter crosses under longer

338


Answer: 3 and 12 day

339



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Trailing stops - letting the profits run

Falling

window

I usually exit, itcorrects somewhat

but then continues

to go in the original

direction after that.

Shooting

Star

You sold at shooting star or

falling window. A rally from a

bull harami gets you nervous

and you exit.But youre still

playing with the markets

money- so another option:

trailing stop.

341


Falling window

Shooting

Star

Where you got nervous

Trailing stops - letting the profits run

342


Letting Profits Run

Buy and set

protective stop

Shooting star

Could take some

or all profits here

Or use dead cross

as your trailing

stop and would

thus exit here

343


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Trailing Stops to let profits run

Buy and set

protective stop

Potential Target

Now at target-Doji warns of

caution. But you

want to let

profits run.

344


Trailing Stops to let profits run

doji

345

Exit Strategies

Protective Stops

Time Stops

Trailing Stops

346


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Trading Journal(setting up the Trade)

Goal: Keeping emotions

out of your trading

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

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

From Toni Turners Book-Short Term Trading in the New Stock Market- www.toniturner.com

347

348


Trading Journal - Setting up the Trade

Entry Price

Risk

Initial Target

Why did you do the trade?

349


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Trading Journal - Analyzing the Trade

Entry Price

Risk

Initial Target


Exit Price

Analyze the trade

350


Entry Price

Risk

Initial Target


Trading Journal - Setting up the Trade

Support from a few months ago

351



Entry Price

Risk

Initial Target

Why did you do the trade

Exit Price?

Analyze the trade

352


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Entry Price

Risk

Initial Target

Why did you do the trade

Exit Price

Analyze the trade

353


Putting it all Together

Trading ChecklistTrading Checklist

Have VALID Candle signal (if not sure-

confirm with Nison candlestick

recognition software)

Does candle co nfirm Western signal (i.e.

ADX, support/resistance, volume, or any

of your favorites)

Stock traders check sector

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)

Use Trade Journal

Date post:	01-Jun-2018
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