The Candlestick Course Review – Understanding Market Psychology:
The Candlestick Course was created by the “King of Candlesticks”, Steve Nison, as a phenomenal resource for both novice and expert traders alike. Beginners can build their foundation in candle charting, while stock market veterans can test and refresh their understanding. Overall, the concepts covered throughout the book allow you to harness the power the most efficient and effective tool in technical analysis, candlestick charts.
You may be wondering why candlestick charts are so important, and the easy answer is that they reveal market sentiment with stunning accuracy. If you can accurately gauge the collective opinion of the market, the opportunities for both growing and protecting your capital will present themselves with frequency and clarity. Through Steve Nison’s interactive approach, you will learn how to recognize patterns, spot trend reversals, and pinpoint opportunities in the market as they arise.
Who is Steve Nison? The Author of The Candlestick Course:
Steve Nison revolutionized the landscape of technical analysis in the financial markets by bringing Japanese candlestick charting techniques to the Western Hemisphere. Widely known as the leading authority on the subject, his works are often referred to as the “bibles” of candle charting analysis. In addition to an MBA in Finance and Investments, Nison is also among the first to receive Chartered Market Technician (CMT) honors from the Market Technicians Association (MTA).
Throughout his years, he has taught his candle charting concepts to thousands of traders and investors around the world in over eighteen countries. To add to his impressive accolades is the fact that he has presented his findings to almost every major financial institution, including the World Bank and Federal Reserve. A couple of his most popular books include Japanese Candlestick Charting Techniques and Beyond Candlesticks. He is also the CEO and founder of a website that offers workshops, seminars, software, and advisory services: Candlecharts.com.
A Trader’s Most Important Signal – A Trend Reversal:
Whether you’re a short-term trader or a long-term investor, you want to make sure you’re on the right side of the trend. Some deem “the trend is your friend” as the #1 rule of investing – and it certainly makes sense. In an ideal world, bulls ride upward trends and then exit their positions as it weakens or reverses. On the flip side, bears seek to ride downward trends and exit their positions as it reverses. As a whole, the beauty of candlestick charts is that they illustrate who is winning the battle between the bulls and the bears – an edge that shouldn’t be underestimated.
The Father of Japanese Candlesticks → Steve Nison
In many cases, awareness of market sentiment can be the difference between profit and loss, and this is especially true when it comes to short-term trading strategies. The shorter the time frame, the higher the volatility (typically), and the more important the psychological aspect of the market becomes. With data from only 1 or 2 sessions, candles can tell a story about sentiment, which can help you as the trader react to shifts in trends and price patterns with amazing accuracy.
To put it simply, there are only two types of analysis when it comes to the markets: fundamental and technical. Fundamental analysis is the backbone of long-term investments, as solid earnings, cashflow, and other financial performance data can raise the price per share over the long-run. But even the most financially stable companies can experience periods of steep decline when overall market sentiment is poor. That’s the extreme influence emotions can have on the markets, and The Candlestick Course can arm you with the knowledge required to discover and capitalize on the emotions of the masses.
Conclusion: Is The Candlestick Course the Holy Grail of Technical Analysis?
The Candlestick Course is perfect for building a strong foundation in technical analysis, but it’s not the “be-all and end-all” – candle charts have their limitations. But when used in conjunction with other indicators, candle charts can help predict a stock’s future price movement rapidly and with a high-degree of accuracy.
Although candle lines and patterns may offer excellent signals, I advise using them in combination with other technical indicators. Just as several strands wound together are stronger than a single fiber, so is the combined power of several indicators all giving the same buy or sell signal. ~ Steve Nison
In the end, The Candlestick Course’s design as an interactive study guide makes it easy for readers to learn and test their understanding as they go. With learning objectives and key terms listed at the beginning of each chapter, followed by knowledge-checks at the close, the entire learning process is facilitated nicely. As a plus, Steve Nison makes rather dry and sometimes complex topics both fun and easy to understand. Overall, each chapter builds on the previous one, which can turn you into a technical analysis pro in no time. As is the case for every trader or investor, acquiring knowledge and applying it correctly will result in increased success in the markets.
Are you ready to discover the “story-telling” world of the Morning Star, Hammer, Dark Cloud Cover, Doji, and many more candlestick lines and patterns? Enhance your buy and sell signals with The Candlestick Course.
Written by Matt Thomas
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My brother has been trading full time ever since I can remember. I wonder if he uses this strategy. I myself have never been brave enough to try as I know many who have lost a lot on the markets. Is this course aimed at beginners or more seasoned traders?
Hi Michel. The Candlestick Course is aimed at beginners looking to build their foundation in technical analysis, but it can be a great refresher for seasoned traders as well. It’s more than a one-time read in my opinion – it’s an outstanding resource whether you’ve been exposed to the subject matter previously or not. For the most part, long-term traders rely heavily on fundamental analysis, while short-term traders rely heavily on technical analysis, and it’s common to find traders and/or investors that use both fundamental and technical analysis to their advantage. The more indicators pointing to a specific outcome you’re looking for, the better. Take care!