In part of his technical analysis, Steve Nison explores how double top and double bottom can be used to determine entry and exit points for a trade.

Steve Nison Candlestick Pattern

With Steve Nison candlestick pattern video, you’ll learn how to read candlestick chart patterns from the Westerner who introduced the concept of candlestick charting to the world.

Steve Nison’s book is available on BooksAmillion.com

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Candle Lines

Candle-lines are used for technical analysis in candlestick charts, as they display the high, low, open, and closing prices of a security for a specific period. Hundreds of years ago, Japanese rice merchants and traders used it to track the market prices and daily momentum, becoming popularised in the United States. The “real body” of a candle is the wide part that shows whether the closing price was higher or lower than the opening price.

Candlesticks body and lines charts show a security’s high, low, open, and closing price over time.

Don’t try to pick tops and bottoms, take your bite out of the middle

– Antoroy

Candlesticks’ shadows show a line that represents the day’s high and low, compared to open and close. The shape of a candlestick depends on the relationship between the day’s high, low, opening and closing prices.

Double Bottom and Double Top

There are two types of price reversal patterns: double tops and double bottoms.

The formation of these reversal chart patterns requires more time.

Double Tops resemble M patterns and indicate a bearish reversal, while Double Bottoms resemble W patterns and indicate a bullish reversal.

Typically, the Double Top and Double Bottom chart patterns form after consecutive rounding tops and bottoms.

Head and Shoulder pattern

A head and shoulders pattern is a technical formation that indicates a trend reversal is taking place. A trend reversal pattern is incredibly useful for traders, whether they are trend traders and want to be alerted to potential danger or they want to catch a trend reversal near the turning point.

Steve Nison explore how head and shoulders patterns can be used to identify entry and exit points for a trade, as part of technical analysis. Traders need to be able to spot and scan for this technical analysis pattern, and understand what it means when it appears. You will also learn how to incorporate technical analysis into your trading strategy and see examples of head and shoulders trading during uptrends and downtrends.

Avatar of Gratia Mario

Gratia Mario

The founder of traderma.com has 12 years of experience in the financial markets. She aims to make trading and investing easy to understand for everyone, and she has been interested in developing the money management techniques.

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Avatar of Gratia Mario

Gratia Mario

The founder of traderma.com has 12 years of experience in the financial markets. She aims to make trading and investing easy to understand for everyone, and she has been interested in developing the money management techniques.

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