The Father of the Candlesticks

Filed under: Learn Forex Trading |

I’ve talked about him before, but just in case you don’t know, the person who brought candlestick charts to the west was a man called Steve Nison. His books opened up a whole new way of looking at charts. Candlestick charts originate in Japan, where they have been used for centuries to analyze price data. However, due to the challenges of language, they were never really popularized in the west until Steve Nison’s groundbreaking research.

 

I would like to take this opportunity just to state, clearly, that the trading techniques and methodology that I use in my “Daily Trades” are not invented by myself, but are now well-known techniques that are used all over the world. These kinds of techniques can be found in the books of Nison, as well as others. The basic principle is to trade price action setups around significant areas of support and resistance. It is a simple premise, but one that many people struggle to come to terms with as humans tend to like to over-complicate things.

 

The price action setups that I use, particularly the engulfing patterns and the pin bars, are also variations of the patterns outlined by Nison and others. If you want to learn about these in more details, then I suggest that you get a hold of some of Nison’s books, although they do tend to be a little expensive. An alternative would be to search online (somewhere like You Tube) and find some of Nison’s trading videos. If you can learn about price action patterns, support and resistance, risk-reward, and money management techniques, then you will be halfway there already to being a pretty decent trader. The candlestick charts are a relatively new way of looking at charts, but they give you so much more information than traditional charts in a very quick and visual way. I will leave you today with some familiar words from Steve Nison himself:

 

“May the candlesticks light your path to prosperity…”

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