What is Candlestick Analysis?

Candlestick analysis is the science of reading and interpreting the language of the financial markets. It gives the trader and investor a visual interpretation of the forces at play in the markets. This applies to the entire spectrum of financial instruments, from individual stocks to stock indices, currencies, bonds and commodities. It gives the trader a psychological edge as the colour coding of the charts instantly reveals the bullish or bearish forces at play.

One of the many advantages of Candlestick analysis is its integrated use of pattern recognition. Every single Candle formation bears a specific name, which ties uniquely in with pattern recognition. Added to that Candlesticks displays exactly the same information as bar charts, but bar charts do not display colours like Candle formations.

What is pattern recognition?

It has long been established that the market repeats itself over and over. It is not an exact carbon copy of the past, but it is nevertheless a close repetition. Gann, who is widely recognised as the master of all masters in the field of trading and technical analysis, once said, quoting the bible: “ There is nothing new under the sun. Everything that has been will be, and everything that is, has already been”.

Pattern recognition is a direct outcome of the axiom of cycles. It is an established fact that the investment environment, i.e. the men and women participating in the market, changes very little over time. The change that does occur has very little effect on the market, in as much as those who are successful tend to have learned to read the market through observation of those already successful. Therefore the behaviour of the market has hardly changed over the last 120 years.

The result of this gives birth to pattern recognition, where stocks, shares, currencies, commodities and every other financial instrument trace out almost predictable paths.

Candlesticks give you, the trader or longer-term investor, to read and understand what is happening in the market. More importantly it gives you the edge to anticipate what will happen next. Candlestick formations will provide you with a framework within which you can derive concrete buy and sell signals in whatever market you are trading, and in whatever timeframe you are using.

What do you mean by “time frame”?

Some traders trade off a 1-minute or a 5-minute chart. We often classify them as scalpers or day traders. Others trade of hourly and daily charts. We often refer to them as swing traders and speculators. Others again use weekly and even monthly charts to take positions in the market.

The wonderful thing about candlestick analysis is that the concept of pattern recognition is uniquely integrated with candlestick formations in order to help any trader in any time frame.

Some scientists have explained this phenomenon through fractals. The lay-mans explanation is that the small picture is merely a mirror image reflection of the bigger picture.

I trade commodities. Will candlestick analysis benefit me?

It has been said that even George Zoros, the multi-billionaire, uses candlestick charts when he looks at the market. The bottom line is that it does not matter what you trade. The candles tell the same story, the patterns tell the same story. The products you are trading might be different things but the candlestick method will purely deal with the language of the market you are trading.

I tend to trade intra-day. Will this course be of use to me?

There is probably not a day-trader in this world that trades without candles. Candles are easy to use and will give you an instant feel for the market. Most day-traders will trade using candlestick bars on a 5-min chart. The patterns taught by Steve Nison will give you an edge over other traders as you learn to anticipate the markets next move.

Does candlestick analysis work with other technical indicators?

Many traders and investors use technical indicators such as Stochastics, Moving Averages, Oscillators, Williams RSI and Bollinger Bands. At a recent seminar, two legends in the industry, Jake Bernstein and Larry Williams, were demonstrating their trading set-ups on charts in front of a London audience. They used candlestick charts as well.

Steve Nison teaches in his seminars how to use candlestick formations together with your most preferred indicators. Candlesticks complement indicators. They support each other rather than compete with each other. An example of this can be found at reversals in the market where certain candlestick formations together with certain volume patterns give very reliable trading signals.

What will you learn on this full day seminar?

You will be in the presence of one of the most admired and respected teachers in the field of trading and investing for a full day. You will learn directly from the father of modern candlestick analysis. 

Using candles to analyse the financial markets gives the traders a unique advantage over line charts and bar charts. Candles instantly give the trader and investor a snapshot impression of the market forces at play with candlesticks. The trader can instantly get a “feeling” for the market. The trader can instantly get an impression if the market is bullish or bearish.

Steve Nison will teach you the foundation of candlestick analysis from the ground up. If you are new to candlestick analysis this is the perfect place to begin your education, by learning from the foremost expert in the field.

If you are a regular user of candles you will find this comprehensive overview of how candles are constructed and used invaluable.

How do Candle Charts perform in weak markets?

One of the great things about candle charts is that they work exceptionally well in any market — especially today's dangerous and volatile environment. Not only will Steve’s  candle trading concepts help you improve your trading profits, but they really shine when it comes to capital preservation.

They help you avoid bad trades. By helping you avoid just one bad trade, or getting in early on a profitable trade, you'll easily pay for your investment in this seminar. His tools and concepts have proven to be that valuable time and again.

One of the best trainers in the world!!!

As a trainer, Steve Nison has taught the very top professional traders from nearly every major investment firm around the world. Not to mention the numerous universities and exchanges that have had him teach his methods.

His work has been highlighted in the financial media, including publications such as the Wall Street Journal, Worth Magazine, and Barron's. And his advisory service attracts world-class brokerage firms, premier trading companies, hedge funds, plus many of the NASDAQ and NYSE market makers.

Why do all of these world-renowned firms put their trust in him? Why do they continue to spend thousands of dollars to have him teach their staffs year after year? Because they know his methods and strategies are right on target.