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Candlestick Charting Basics:Spotting the Early Reversals Signals
555 Route 18 South PMB 2000 East Brunswick, NJ 08816 USA Telephone: 732-254-8660 Facsimile: 732-390-6625
Web site: www.candlecharts.com E–mail: [email protected]
By
Steve Nison, CMTPresident, Candlecharts.com Inc.
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“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” --- Barron’s
Media Comments
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openopen closeclose
openopen
Real Body
high
low
Shadow
Real Bodies / Shadows Doji
Constructing the Candle LineConstructing the Candle Line
closeclose
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Drawing Candle LinesDrawing Candle Lines
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28session open high low close
1 23 26 21 25
2 26 28 23 27
3 23 27 22 22
4 25 28 22 25
5 27 27 25 25
1 2 3 4 5
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28session open high low close
1 23 26 21 25
2 26 28 23 27
3 23 27 22 22
4 25 28 22 25
5 27 27 25 25
1 2 3 4 5
Drawing Candle LinesDrawing Candle Lines
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Small Real Bodies(spinning tops)
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Candle(stick) Chart - spinning tops
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Small Real BodiesSmall Real Bodies
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Doji after tall white candleDoji after tall white candle
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Doji after tall whiteDoji after tall white
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Doji as ResistanceDoji as Resistance
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Gravestone DojiGravestone Doji
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Long Upper (Bearish ) Long Upper (Bearish ) ShadowsShadows
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Long Upper ShadowsLong Upper Shadows
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Long Lower (Bullish) ShadowsLong Lower (Bullish) Shadows
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HammerHammerHammer
black or white
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Shooting StarShootingShooting StarStar
black or whiteblack or white
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Shooting StarShooting Star
?
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High Wave CandlesHigh Wave Candles
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High Wave CandleHigh Wave Candlenew high close, but??
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High Wave CandleHigh Wave Candle
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High Wave CandleHigh Wave Candle
Who’s in Charge?
Who’s in Charge Now?
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Convergence of Candles Define Convergence of Candles Define SupportSupport
12 3
4
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Engulfing PatternsEngulfing Patterns
BearishBearishEngulfing Engulfing PatternPattern
BullishBullishEngulfingEngulfingPatternPattern
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Engulfing PatternsEngulfing PatternsBearish
Bullish
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How many black candles did this wrap around?
Bullish Engulfing PatternBullish Engulfing Pattern
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Bearish Engulfing PatternBearish Engulfing Pattern
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The Trading TriadThe Trading Triad??
Candle Charts Candle Charts Candle Charts
Capital Preservation
Capital PreservationWesternWesternWestern
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Volume confirms signalVolume confirms signal
High Volume Hammer
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STOPSSTOPS
Shooting star
Bearish Engulfing Pattern
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Shooting Star (convergence)Shooting Star (convergence)Shooting Star
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?Web site: www. candlecharts.com
?E-mail: [email protected]
?Telephone: 732.254.8660