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Show Notes
The Candlestick Course (Steve Nison)
- Amazon USA Store: https://www.amazon.com/dp/0471227285?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/The-Candlestick-Course-Steve-Nison.html
- eBay: https://www.ebay.com/sch/i.html?_nkw=The+Candlestick+Course+Steve+Nison+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0471227285/
#candlestickcharting #SteveNison #technicalanalysis #priceaction #tradingpatterns #TheCandlestickCourse
These are takeaways from this book.
Firstly, Candlestick Foundations and Market Psychology, A core theme of the book is that every candlestick is a compact record of market psychology across a defined time period. By understanding open, high, low, and close, a trader can infer whether buyers or sellers were in control and whether that control strengthened or weakened into the close. The book explains how real bodies and shadows convey urgency, hesitation, and rejection of certain price levels. Long bodies often suggest strong conviction, while small bodies can signal indecision or a transition point. Upper and lower shadows help reveal where attempts to push price higher or lower failed, which is critical for spotting supply and demand shifts. The text also introduces basic candlestick vocabulary and classification so readers can speak a consistent analytical language. This foundation matters because pattern recognition without psychological interpretation becomes rote and error prone. By tying the candle shape to behavior, the reader learns to think in terms of pressure, acceptance, and rejection. That mindset supports better decision making, including when to wait for confirmation, when to reduce position size, and when a setup is likely noise rather than signal.
Secondly, Reversal Patterns and Early Warning Signals, The book highlights candlesticks as potential early warning tools, especially for identifying reversals near important levels. It covers widely followed reversal formations such as hammer and hanging man, engulfing patterns, piercing and dark cloud concepts, and multi candle structures that suggest a change in control. The emphasis is not that a single pattern predicts the future, but that it alerts the trader to a possible turning point that deserves attention. Context is treated as essential: the same candle formation can have very different meaning depending on whether it appears after an extended trend, into a prior support or resistance zone, or after a volatility expansion. The book encourages readers to look for alignment between the pattern and broader evidence, such as whether the market is overextended, whether there is a notable gap or strong range expansion, or whether the candle rejects a key level. It also discusses practical confirmation approaches, like waiting for follow through in the next session or using nearby levels to define risk. This topic equips readers to spot inflection points earlier while avoiding the common trap of acting on every pattern in isolation.
Thirdly, Continuation Setups, Trend Participation, and Timing, Beyond reversals, the book addresses how candlesticks can support trend continuation decisions and improve timing within an existing market direction. Many traders struggle not with identifying a trend, but with entering too late, exiting too early, or buying tops and selling bottoms during normal pullbacks. Candlestick analysis can help by offering signals that a pause is resolving and that the dominant trend may be resuming. The material discusses patterns often associated with continuation behavior and consolidation, emphasizing how to interpret candle sequences that show controlled retracement, reduced volatility, and then renewed momentum. Attention is given to the relationship between candle ranges and the surrounding structure, since a continuation pattern is most meaningful when it occurs after a clear directional move and during an orderly pause rather than within a choppy range. The book also explains how traders can use candle highs and lows as tactical reference points for entries and protective stops. This approach helps readers participate in trends with more precision, using price action to define when momentum is returning and when a consolidation is breaking down. The overall goal is to trade with the trend while managing risk around clearly observable price levels.
Fourthly, Support, Resistance, and Blending Candlesticks with Western Tools, A major practical takeaway is that candlesticks gain power when blended with established Western technical analysis concepts. The book reinforces using trendlines, moving averages, price channels, and classical support and resistance as the framework, then using candlesticks to fine tune entries, exits, and risk placement. Support and resistance zones are treated as decision areas where candles can reveal whether a level is holding or failing. For example, a rejection style candle near support may indicate buyers defending that zone, while a strong close through resistance can signal acceptance above the level. This integration helps reduce false signals because it demands confluence rather than pattern chasing. The reader is encouraged to think in layers: first identify the market environment, then locate key levels, and only then interpret candlestick evidence for timing. The book also discusses how different time frames interact, a crucial point because a compelling pattern on one chart may be noise against a higher time frame trend. By combining tools, traders can form clearer trade plans, define invalidation points, and avoid acting on isolated candles that lack structural relevance. This topic positions candlesticks as a decision aid inside a broader technical toolkit.
Lastly, Risk Management, Trade Planning, and Common Mistakes, The book repeatedly implies an important discipline: candlestick patterns are signals, not guarantees, so risk management must be built into every decision. This topic centers on practical trade planning, including how to use candle structures to set logical stop locations and how to size positions so a single trade cannot do major damage. Candlestick highs, lows, and nearby support and resistance zones can serve as natural invalidation levels, making it easier to define what must be true for the trade idea to remain valid. The material also addresses common errors such as treating pattern names as automatic buy or sell commands, ignoring trend context, and overlooking how volatility regimes affect pattern reliability. Another mistake is failing to wait for confirmation when the market is choppy or when the pattern appears mid range rather than at a meaningful location. The book encourages traders to keep records and study outcomes so they learn which setups fit their market and time frame, rather than copying generic rules. By focusing on discipline, planning, and error reduction, this topic helps readers turn candlestick knowledge into a repeatable process. The result is a more professional approach where patterns inform decisions but risk controls protect the account.
- Amazon USA Store: https://www.amazon.com/dp/0471227285?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/The-Candlestick-Course-Steve-Nison.html
- eBay: https://www.ebay.com/sch/i.html?_nkw=The+Candlestick+Course+Steve+Nison+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0471227285/
#candlestickcharting #SteveNison #technicalanalysis #priceaction #tradingpatterns #TheCandlestickCourse
These are takeaways from this book.
Firstly, Candlestick Foundations and Market Psychology, A core theme of the book is that every candlestick is a compact record of market psychology across a defined time period. By understanding open, high, low, and close, a trader can infer whether buyers or sellers were in control and whether that control strengthened or weakened into the close. The book explains how real bodies and shadows convey urgency, hesitation, and rejection of certain price levels. Long bodies often suggest strong conviction, while small bodies can signal indecision or a transition point. Upper and lower shadows help reveal where attempts to push price higher or lower failed, which is critical for spotting supply and demand shifts. The text also introduces basic candlestick vocabulary and classification so readers can speak a consistent analytical language. This foundation matters because pattern recognition without psychological interpretation becomes rote and error prone. By tying the candle shape to behavior, the reader learns to think in terms of pressure, acceptance, and rejection. That mindset supports better decision making, including when to wait for confirmation, when to reduce position size, and when a setup is likely noise rather than signal.
Secondly, Reversal Patterns and Early Warning Signals, The book highlights candlesticks as potential early warning tools, especially for identifying reversals near important levels. It covers widely followed reversal formations such as hammer and hanging man, engulfing patterns, piercing and dark cloud concepts, and multi candle structures that suggest a change in control. The emphasis is not that a single pattern predicts the future, but that it alerts the trader to a possible turning point that deserves attention. Context is treated as essential: the same candle formation can have very different meaning depending on whether it appears after an extended trend, into a prior support or resistance zone, or after a volatility expansion. The book encourages readers to look for alignment between the pattern and broader evidence, such as whether the market is overextended, whether there is a notable gap or strong range expansion, or whether the candle rejects a key level. It also discusses practical confirmation approaches, like waiting for follow through in the next session or using nearby levels to define risk. This topic equips readers to spot inflection points earlier while avoiding the common trap of acting on every pattern in isolation.
Thirdly, Continuation Setups, Trend Participation, and Timing, Beyond reversals, the book addresses how candlesticks can support trend continuation decisions and improve timing within an existing market direction. Many traders struggle not with identifying a trend, but with entering too late, exiting too early, or buying tops and selling bottoms during normal pullbacks. Candlestick analysis can help by offering signals that a pause is resolving and that the dominant trend may be resuming. The material discusses patterns often associated with continuation behavior and consolidation, emphasizing how to interpret candle sequences that show controlled retracement, reduced volatility, and then renewed momentum. Attention is given to the relationship between candle ranges and the surrounding structure, since a continuation pattern is most meaningful when it occurs after a clear directional move and during an orderly pause rather than within a choppy range. The book also explains how traders can use candle highs and lows as tactical reference points for entries and protective stops. This approach helps readers participate in trends with more precision, using price action to define when momentum is returning and when a consolidation is breaking down. The overall goal is to trade with the trend while managing risk around clearly observable price levels.
Fourthly, Support, Resistance, and Blending Candlesticks with Western Tools, A major practical takeaway is that candlesticks gain power when blended with established Western technical analysis concepts. The book reinforces using trendlines, moving averages, price channels, and classical support and resistance as the framework, then using candlesticks to fine tune entries, exits, and risk placement. Support and resistance zones are treated as decision areas where candles can reveal whether a level is holding or failing. For example, a rejection style candle near support may indicate buyers defending that zone, while a strong close through resistance can signal acceptance above the level. This integration helps reduce false signals because it demands confluence rather than pattern chasing. The reader is encouraged to think in layers: first identify the market environment, then locate key levels, and only then interpret candlestick evidence for timing. The book also discusses how different time frames interact, a crucial point because a compelling pattern on one chart may be noise against a higher time frame trend. By combining tools, traders can form clearer trade plans, define invalidation points, and avoid acting on isolated candles that lack structural relevance. This topic positions candlesticks as a decision aid inside a broader technical toolkit.
Lastly, Risk Management, Trade Planning, and Common Mistakes, The book repeatedly implies an important discipline: candlestick patterns are signals, not guarantees, so risk management must be built into every decision. This topic centers on practical trade planning, including how to use candle structures to set logical stop locations and how to size positions so a single trade cannot do major damage. Candlestick highs, lows, and nearby support and resistance zones can serve as natural invalidation levels, making it easier to define what must be true for the trade idea to remain valid. The material also addresses common errors such as treating pattern names as automatic buy or sell commands, ignoring trend context, and overlooking how volatility regimes affect pattern reliability. Another mistake is failing to wait for confirmation when the market is choppy or when the pattern appears mid range rather than at a meaningful location. The book encourages traders to keep records and study outcomes so they learn which setups fit their market and time frame, rather than copying generic rules. By focusing on discipline, planning, and error reduction, this topic helps readers turn candlestick knowledge into a repeatable process. The result is a more professional approach where patterns inform decisions but risk controls protect the account.
