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Steve Nison's Candlestick book

  • Post #1
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  • First Post: Jan 14, 2009 1:58am Jan 14, 2009 1:58am
Hey guys I'm reading through Steve Nison's Japanese Candlestick Charting book and I have a question on its applications to Forex.

I've just started reading the book, but it seems that some of the patterns depend on the difference of close/open prices between days. Since it talks about markets with limited trading hours, the closing price of one day is not necessarily the same as the opening price of the next day. He uses these differences in the definition of some of these patterns. Since Forex is a 24h market, these don't really apply. I'm wondering if anyone here has read the book (most probably) and how they deal with this.
Quoting Woggy
Hey guys I'm reading through Steve Nison's Japanese Candlestick Charting book and I have a question on its applications to Forex.

I've just started reading the book, but it seems that some of the patterns depend on the difference of close/open prices between days. Since it talks about markets with limited trading hours, the closing price of one day is not necessarily the same as the opening price of the next day. He uses these differences in the definition of some of these patterns. Since Forex is a 24h market, these don't really apply....
Its a long time since I read SN's book and whilst I dont personally use candle patterns in my trading I would highlight the following problem.

As you've correctly said, forex is a global, 24 hour market and that means that different brokers keep different hours, with their trading / analysis programs set accordingly with different start times. Thus, on ANY chart above the 60 minute they will show DIFFERENT candles depending on their chart start times. This is especially noticable on the 4 hourly and daily charts and IMO makes candlestick pattern trading worthless on these TFs.

You might read a few of eyevoltage's posts in this thread - he uses candlesticks on the lower TFs. Good luck.

Islander.

http://www.forexfactory.com/showthre...98028&page=106
Trading Levels with WRBs
Hmm, yes, good point. I mainly stick with hourly charts anyway, so that shouldn't be too much of a problem.

A quick thought on using GMT as the reference timezone - London opens at 8AM and New York finishes off the day at 9PM. Since these are the two most active markets, a daily chart based on GMT (+- a few hours) is probably the most valid.
  • Post #4
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  • Edited 2:51am Jan 14, 2009 2:40am | Edited 2:51am
This is an interesting post
http://www.forexfactory.com/showpost...postcount=1580

Note 'Dark Cloud Cover'. This is the particular pattern that got me thinking about this issue. Note how the open of the second bar is above is above the close of the previous bar. How does that happen? In fact it happens to pretty much all the bars on that chart ... is this just because of the discrete price movement causing jumps?

EDIT: Yeah, nevermind. Has to be. Happens to my charts if I zoom in enough.


Can anyone recommend a good book for trading a market like Forex based on price action - similarly to what is done in the james16 chart thread?
Nison has a forex specific dvd. Steve Nison - Profiting in Forex. Its a good dvd - seminar setting - He basically states ignore gaps in candle patterns since in a continuous market they are not applicable. For instance in books the doji is always shown gapped away in patterns. Here is how he presents a forex doji. Also the same for other patterns, dark cloud cover, engulfing patterns etc.
PS - HE also states to use 5pmEST close as it is the most common of the close times on charts. Don't know if this makes a diff or not.
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In trading, there is no bullshit. You either make money or you don't.
Thanks very much for that, much appreciated.

I've seen his Forex DVD for sale but damn, its way too expensive. Its like $500 ...
You can find it on some of sites like FileFactory or so.
Then, you don't have to pay 500$

Cheers,

Shone
Hi,

Yeah I got Steve Nison Profiting in Forex Video Workshop too. My comment is marvelous. It's really fulfill my needs as a beginner/intermediate trader using candlestick in forex market. I believe you wont be disappointed to have this US $595.00 video workshop.

Juz email me at [email protected] how to get this video using download link via rapidshare.com instead..
Quoting Woggy
Thanks very much for that, much appreciated.

I've seen his Forex DVD for sale but damn, its way too expensive. Its like $500 ...

You can find it on p2p

(I hope that was allowed)
Hi,

i downloaded Nison FOREX CD from FileFactory i think.
If you already read his books or Stephan Bigalow books about
candlesticks, you want find too much new.
In first 2 CD, everything is so slowly, not too much info.
I think that real value for this is 100-200$, not 500$.

Cheers,

Shone

p.s.

Does anyone has link to Samurai Trader ?
Does it worth ?
I was attending Stephan Bigalow 2 day webinar (from 9-17h) and it is worth 500$.
Quoting eldyakin
Hi,

Yeah I got Steve Nison Profiting in Forex Video Workshop too. My comment is marvelous. It's really fulfill my needs as a beginner/intermediate trader using candlestick in forex market. I believe you wont be disappointed to have this US $595.00 video workshop.

Juz email me at [email protected] how to get this video using download link via rapidshare.com instead..
yeah, for $40, give me a fkin break you sleazy salesman. and what's worst is that you are charging for something that isn't yours. and i really like how you say that it fulfills your needs as a beginner so that you can trap newbies into sending you an email, just to find out that you charge $40 for the links. shame on you
Twitter: @forexpokerpro
  • Post #12
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  • Last Post: Edited Feb 11, 2012 8:15am Feb 10, 2012 11:54pm | Edited Feb 11, 2012 8:15am
In the DVDs, Steve Nison said that he has 18 trading principles that he taught to institutional traders. But in the DVDs, he only mentioned selected few such as "Principle #6 - A candlestick line or pattern requires two criteria: (i) The shape of the line or pattern (ii) The preceding trend". The second criteria about preceding trend is what most candlestick readers ignored when they excitedly found a pattern setup.

I'm just curious for completeness sake, if anyone can tell me where to find all 18 principles. I tried searching but the terms are too general.

I highly recommend the DVDs "Profiting in Forex by Steve Nison".
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