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
open
close
Real
Bod
Body
open
close
low
Doji
Real Bodies / Shadows
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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?
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3
Small Real Bodies
(
(spinning
tops))
C
Criteria
Small real body – color
S
not important
Implication Prior trend is losing
force
o ce
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4
What does this bar chart say?
Holding the highs very
well so looks fine
Chart courtesy
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5
Now what does this candle chart say?
Does the market still
look fine?
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6
And what happened after ….
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7
Spinning Tops
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Although
g descending,
g, the small real
bodies offset some of the negative
outlook
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8
Doji
Criteria:
Open and close are the same
Implication: Market is “tired”
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9
Doji
Chart courtesy
y of Genesis FT
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10
Spinning Top and Doji
If a spinning top is small
enough we can view it as
a doji
GBP/$
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Doji compared to spinning tops in FX
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12
Non Forex Doji
Which of these
scenarios is a more
likely top reversal?
S
Scenario
i 1
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S
Scenario
i 2
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13
Doji in Forex
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14
Doji
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15
Doji
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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”
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17
Doji as Resistance
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18
Doji as Resistance
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19
Nison Trading Principle #6
A candlestick line or pattern
requires two criteria:
• The shape of the line or pattern
• The preceding trend
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20
Doji and Trend
Concept:
C
t
To use a northern doji as
a signal we need to have
p
to reverse
an uptrend
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Doji
D
ji in
i a “Box
“B Range”
R
” is
i
not a trading signal
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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
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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
23
force.
Bullish Shadows
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24
Bearish Shadows
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Bearish Shadows
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26
Hammer
Criteria:
• Small real body at,
at or near top,
top of range
• Lower shadow at least 2x real body
• Market in down trend
black or white
Implication: ‘Groping
Groping for a bottom
bottom”
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27
Hammer
Will often retest lower shadow
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Hammer as support
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co rtes of Genesis FT
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Hammer as support
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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
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31
Shooting Star - Hammer
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32
Shooting Star as resistance
Chart courtesy
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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?
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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”
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36
Bull Checkmate
☺
☺
☺
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37
1 of 2
Bull Checkmate
Checkmate area
☺
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2 of 2
☺
Bullish Engulfing Pattern
Criteria:
• White real body wraps around
preceding black real body
• Market in down trend
•Implication:
p c o : Market
e bottoming
bo o
g out
ou
open
open
close
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39
Bullish Engulfing Pattern
Checkmate area
Chart courtesy
y of Genesis FT
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40
Bullish Engulfing Pattern
Ch t courtesy
Chart
t
off G
Genesis
i FT
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41
Bullish Engulfing Pattern as Support
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42
Bullish Engulfing Pattern
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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”
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Bearish Engulfing Pattern
Chart courtesy
y of Genesis FT
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45
Bearish Engulfing Pattern
?
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46
Bearish Engulfing Pattern as Resistance
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47
Engulfing Patterns compared to Outside Reversal
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Engulfing Patterns – Compare Real Bodies
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Engulfing Patterns
Bearish
Bullish
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Both are Bearish Engulfing
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51
Bullish Engulfing Pattern
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52
Bullish Engulfing Pattern as Support
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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”
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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”
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55
Dark Cloud Cover as Resistance
Weekly
Weakly
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Dark Cloud Cover
Not dark cloud covers
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Dark Cloud Covers
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Dark Cloud Cover
Close – open 1 pip
Didn’t get
g
deeply into
white candle
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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”
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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”
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61
Piercing Pattern
Not a piercing
pattern
Piercing pattern
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62
Piercing Pattern Confirming Support
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Piercing Pattern as Support
Chart courtesy
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64
Confluence of Candles
c
d
e
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Non Forex Harami
Bearish
i
white or black
Criteria:
• First candle is unusually long
• Second real body spinning top or doji
• Second real body within prior real body
• Second real body can be black or white
66
Implication: ‘Change in flow of market”
white or
black
Bullish
Forex Harami
Bearish
i
black real body
Criteria:
• First candle is unusually long
• Second real body spinning top or doji
• Second real body within prior real body
• Second real body opposite color
67
Implication: ‘Change in flow of market”
white
Bullish
Bear Harami
Not harami
Chart courtesy
Chart ycourtesy
of Genesis
y of Genesis
FT
FT
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Harami confirms resistance
Ch t courtesy
Chart
t
off G
Genesis
i FT
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69
Bull Harami
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Bull Harami
Chart courtesy
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71
Harami
Bearish
Bullish
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72
Non Forex Morning Star
Criteria:
• Market in down trend
• First candle long black
• Second
S
d reall b
body
d ((spinning
i i ttop, bl
black
k 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:
• Market in down trend
• 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
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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
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Evening Star
Chart courtesy
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Chart courtesy of Genesis FT
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Evening Star Variation
Bear Engulf
Near
resistanc
e–
would
you sell
short?
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80
Evening Star as resistance area
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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
Nison Trading Principle #4
Even a “perfect”
perfect candle signal
does not equal a good trade!
YOU MUST ALWAYS JUDGE
THE POTENTIAL TRADE’S
RISK-REWARD
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85
Hammer confirms support/but what about r/r?
Chart courtesy of Genesis FT
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86
Risk/ Reward
Chart courtesy of Genesis FT
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87
Morning Star but ????
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88
Risk – Reward
Let’s
Let
s think about this R/R
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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
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91
Stops: Always use
92
Stops
Where is the stop?
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93
1 of 2
And what happened after
What if
it went
to
here?
Would
you
still
want
to be
short?
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94
2 of 2
Setting Stops w/o waiting for close
Shooting star close = 121.92
Target = 121.64
Potential reward 28 pips
Shooting star
confirms
resistance
For 2:1 reward risk = risk 14 pips
Shorted 121.92 + 14 pips =
Intraday stop 122.06
Target
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95
Indicators: The more the
better
96
Nison Trading Principle #12
The more signals - either candles
or Western or a combination of
both – converging at the same
level, the more likely a reversal
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97
Confluence of Candles
Chart courtesy of Genesis FT
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98
Confluence of Candles
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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
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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™
Is the market at resistance?
Are there any reversal signals?
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1 of 3
Using the Candlestick Screener™
Screener™
Is the market at resistance?
Are there any reversal signals?
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105
2 of 3
Using the Candlestick Screener™
Screener™
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106
3 of 3
The Candlestick Screener™
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107
Using candles to enter vs. exit
Doji
Hammer
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108
Candles to exit or adjust stops
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109
Change of Polarity
Congratulations – you
bought at support!
110
Congratulations? –
you bought at
support?
Change of Polarity
Resistance
Resistance
Support
Support
111
Change of Polarity
Resistance
Support zone
becomes …
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112
Internal trend line
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113
East and West = Increased Confidence
Doji
Prior support
becomes new
resistance
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114
Crack and Snap
Target
Snap
Buyy
Crack
115
Stop
Falling off the Roof
Stop
Sell
Target
g
116
Crack and Snap
target
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117
Falling off the roof!
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118
Nison Trading Principle #13
Candlesticks do not give price targets.
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119
Candles and price targets
Doji
confir
ms
resista
nce
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120
Change of Polarity and Measured Moves
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121
Western Techniques for Targets
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122
West for Targets
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123
Head and Shoulders
Head
Right
g t
Shoulder
Left
f Shoulder
S
Neckline
Head and Shoulders Top
124
Sell
signal
Three Buddha Pattern
125
Applying Western Techniques to Candle Charts
Neckline
LS
RS
Head
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East and West: West for Targets
April 6
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127
1 of 2
West for price targets - East for confirm
Target
Piercing pattern
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128
2 of 2
Oscillators
 Objective
 Separate from price
 Best in lateral markets
 Includes Stochastics, MACD,
RSI, etc.
129
Applications
 Overbought/Oversold:
too far too fast?
 Divergence
130
Candles in Context of Overbought/Oversold
At which doji is the market more vulnerable?
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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
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133
East and West
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134
Candles and Oscillators
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135
Oscillators and Trend
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136
East and ……
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137
East and West (Bollinger Bands)
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138
Bollinger Bands
Bearish Engulfing Pattern Shooting star
Doji, bear shadows
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139
East & West
Doji warn
market is
tired.
Confirming
resistance at
upper
Bollinger
Band
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Correction
ends with
piercing
pattern at
lower
Bollinger
Band
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140
Dual Bearish Candle Signs & Divergence
Shooting Star
Bearish
i h
engulfing
pattern
Both patterns
confirmed upper
Bollinger Band
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141
Fibonacci
Retracements
(B) 200
38.2% (162)
50%
(150)
61.8%
% ((138))
((A)) 100
$100
142
Candles & Fibonacci
Dark cloud cover
Gravestone
doji
Hammer
Hammer
confirming 50%
confirming
50%
retracement
retracement
Bullish
lli h
engulfing
pattern
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143
Fib. Retracements with Candles
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144
Fib. Retracements
Bull Engulf near 62%
Hammer
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145
East, West & Fibonacci
Bearish
engulfing
pattern
confirming
upper Bollinger
Band
Support
at 50%
Fib
retracem
ent
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146
Bullish Harami
Candles in Context
147
Candles in Context
Morning star
but ???
Ch t courtesy
Chart
t
off G
Genesis
i FT
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148
Candles in Context
Why not sell at this doji?
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149
Candles in Context
What
a are
a
2 reasons
not to
short on
this
shooting
star?
Prior resistance converts to new support
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150
Candles in Context
Did the Euro have a
sense of direction?
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151
1 of 2
Candles in Context
O
Oversold?
ld?
Oversold?
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152
2 of 2
Record Sessions
Overbought / Oversold Indicator
9
9 record session highs
7
6
5
4
3
2
1
low for move
153
8
Record Session Highs
89
7
6
5
4
3
2
1
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154
Record Session Lows
8 9
7
1
1
2
6
3
23
4
5
4
1
1
2
3
2
3 4
5
6
7
8
9
10
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155
Haven t made
Haven’t
5
a lower low
and now
relieved
potential
oversold
situation so
count starts
again
Intra
ntra--day candles
156
Intraday Candlesticks
Flexibility
y
157
Flexibility with Candle Signals
close
open
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158
Intraday Candlesticks
Intraday Traders:
Daily
D
il Charts
Ch t ffor S
Supportt
or Resistance
159
Daily Chart for Support/Resistance
Daily Chart
ask@candlecharts.com
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 intraday chart
to see if
137.07
there are any buy
signals as the
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Euro/Yen cross nears
this USA
level ….. (see next
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160
chart).
Feb. 27
1 of 2
… and then use daily support/resistance on intraday chart
Intraday Chart
Target Zone
Piercing Pattern
137 07 from daily chart
137.07
Feb. 27
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2 of 2
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
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Melding Daily Support/Resistance onto Intraday Candle Chart
Intraday Chart
Potential
Target
Support Zone from Daily Chart
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Support / Resistance from Daily Chart …..
1 of 2
Resistance zone
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164
…… placed on intraday chart
Resistance zone
From daily chart
Potential Targets
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2 of 2
Trade Intraday? Still have to monitor daily chart
Intraday
Why did the rally stall
near 1.297
1 297 on JJune 5?
Chan
ge of
polarit
y for
buyin
g
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y of Genesis FT
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1 of 2
Always know support/resistance on daily/weekly charts
Daily
June 5
Note important resistance here!
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2 of 2
Intraday Candlesticks
Swing Traders:
Intraday Candlestick
Charts to Improve Timing
168
Why Intraday – even if you are not a day trader
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?
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169
1 of 4
Why Intraday – even if you are not a day trader
April 3 - 60 minute
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2 of 4
Why Intraday – even if you are not a day trader
April 3 - 30 minute
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3 of 4
Why Intraday – even if you are not a day trader
Buy on close?
Intraday buy
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172
4 of 4
Intraday for Early Reversals
Stop
Signal at 123.20
60 minute
Daily
Close on April 6
Short at 122.29?
122 29?
Or
Signal
at
123.05
Target
April 6
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173
Intraday Candlesticks
Swing Traders:
Intraday Charts to Confirm
Support or Resistance
174
Harnessing the Extra Insights of Intraday Candles
Chart courtesy of Genesis FT
How can we tell if this bullish
engulfing pattern
on May 17 was a successful
retest of support?
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1 of 2
Harnessing the Extra Insights of Intraday Candles
30 minute May 17
60 minute May 17
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2 of 2
15 minute May 17
Intraday Candlesticks
Intraday and Swing Traders:
Multiple Intraday Time
Frames
177
Using Intraday Charts to Get Earlier Reversals
Morning Star
P tt
Pattern
confirmed
fi
d
July 19 at 1.2593,
now let’s
go to intraday
g
y ….
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1 of 2
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178
Using Intraday Charts to Get Earlier Reversals
30 minute July 19
15 minute July 19
Hamm
a
er
comple
ted
at
1.2481
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Morning Star
completed
at 1.2488
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2 of 2
60 minute July 19
Piercing Pattern
completed
at 1.2488
Never trade without
knowing about news
180
The water looks fine….
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1 of 2
The water looks fine….
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182
2 of 2
Let go of emotions
183
Long Lower (Bullish) Shadows
Although this market is
descending, the long
lower shadows lessens
some of the negative
outlook
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184
Non Emotional Trading
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185
Pace trades to market
environment
186
Nison Trading Principle #18
Market Chameleon: As market
environment changes we must
adapt
p our market outlook
and stance
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187
The water looks fine….
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1 of 2
Be a Market Chameleon
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2 of 2
Adapting to the Market
1 of 4
What is this pattern?
What is potential 1st support?
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190
Adapting to the Market
2 of 4
1) What is potential 1st support?
2) Any bull candle signals?
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191
Adapting to the Market
3 of 4
potential
target
How about here?
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Adapting to the Market
4 of 4
potential
target
ask@candlecharts.com
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193
Adapting to Changing Market Conditions
1 of 3
S1
S2*
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194
Adapting to Changing Market Conditions
2 of 3
S1*
Anything new?
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195
Adapting to Changing Market Conditions
3 of 3
S1
S1*
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Being a Market Chameleon
1 of 3
Stop
Short
Target
g
ask@candlecharts.com
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197
Being a Market Chameleon
Target
ask@candlecharts.com
Anything happening
to change your
outlook?
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2 of 3
Being a Market Chameleon
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3 of 3
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
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203
Why Candles – First for Reversals!
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204
Candlestick
Ch ti
Charting
Techniques
Western
Charting
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
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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
1
A- What are the three candle
signals at 1?
B-What
B
What else warned of the
market stalling at area 1?
Pause Now- Resume when done
3
Case Study 2: Part 1 – Answer
1
A-What are the three candle
signals at 1?
S i i
Spinning
T
Top
Doji
Harami
4
Case Study 2: Part 1 – Answer
1
B-What else warned to the
market stalling at area 1?
Resistance area
5
Case Study 2: Part 2
2
What is the candle signal at
2?
Anything else to get us
nervous?
Pause Now- Resume when done
6
Case Study 2: Part 2 – Answer
2
What is the candle signal at 2?
Shooting Star
Anything else to get us nervous?
Failure to hold over
resistance
7
Case Study 2: Part 3
Is 3 a hammer?
3
Pause Now- Resume when done
8
Case Study 2: Part 3 – Answer
Is 3 a hammer?
3
No, the upper shadow is
No
too long.
But what pattern does 3
complete?
Bull Harami
9
Case Study 2: Part 4
4
What pattern is 4?
Pause Now- Resume when done
10
Case Study 2: Part 4 – Answer
4
What pattern is 4?
None- trend is wrong
11
Case Study 2: Part 5
5
What pattern is 5?
Pause Now- Resume when done
12
Case Study 2: Part 5 – Answer
5
What pattern is 5?
Bearish Engulfing Pattern
13
Case Study 3
4
1
2
3
What candle
indicators were
there at 1-4?
Pause Now- Resume when done
14
Case Study 3 – Answer
4
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?
Pause Now- Resume when done
16
Case Study 4 – Answer
4
1
What are
the signals
hinting of
trouble?
2
3
1234-
doji and harami
bearish engulfing
bearish engulfing
resistance
17
Case Study 4: Part 2
4
3
Would you sell at 3?
Pause Now- Resume when done
18
Case Study 4: Part 2 – Answer
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
Pause Now- Resume when done
Chart courtesy
y of Genesis FT
2.What pattern
20
Case Study 5: Part 1 – Answer
High Wave
Bear shadows and
small real bodies
Bearish Engulfing
Pattern
Chart courtesy
y of Genesis FT
21
Case Study 5: Part 2 – Answer
Piercing Pattern
Chart courtesy
y of Genesis FT
What pattern
22
Case Study 5: Part 3 – Answer
1- 50% Fib retracement
2- doji
3- harami
4 esistance area
4-resistance
a ea
Reasons for
caution here?
1
Fibonacci Retracements
3
4
2
Chart courtesy
y of Genesis FT
23
Case Study 6
1. What
1
Wh
candle signals
warn of
trouble?
3. What is happening
here regarding bull
force?
2. Why are these
h
hammers
likely
lik l tto
work?
Pause Now- Resume when done
5. Any
reason
for
caution?
4.a)Is this a
piercing
pattern?
b) Would you
buy here?
Chart courtesy
y of Genesis FT
24
Case Study 6: Part 1 – Answer
1. What
1
Wh t
candle
signals warn
of trouble?
Two dark cloud covers
Chart courtesy
y of Genesis FT
25
Case Study 6: Part 2 – Answer
2. Why are these
h
hammers
likely
lik l tto
work?
Chart courtesy
y of Genesis FT
26
Case Study 6: Part 3 – Answer
3. What is happening
here regarding bull
force?
Spinning Tops
Chart courtesy
y of Genesis FT
27
Case Study 6: Part 4 – Answer
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
Case Study 6: Part 5 – Answer
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
Pause Now- Resume when done
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 are
e some
ome target(s)
t get( )
Pause Now- Resume when done
32
What would you do? – Answer
1) Would you buy at the
arrow?
2) Where is your stop?
3) Where
Whe e are
e 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.
Pause Now- Resume when done
34
What would you do? – Answer
Crack and snap
35
What would you do?: Part 1
Shooting star
Pause Now- Resume when done
Chart courtesy of Genesis FT
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
Pause Now- Resume when done
40
What would you do? – Answer
R2
R1
Above R1, but at R2- so do nothing
41
What would you do? – What followed
42