【iOS & Android】

Follow us on: 

Disclaimer: All information provided on this website is solely for educational and reference purposes, and does not constitute - or should be understood as constituting - advices or recommendations for trading or investment. We shall not be liable for any damages or losses arising out of the use of this website. Please trade or invest at your own risk.

You're Reading the Candlestick Patterns WRONG! Here's the RIGHT Way.

I've been receiving thousands of messages asking about the Japanese Candlestick Patterns (JCP). Just in case you don't know, you can reach me by clicking the contact button on the Learning Hub page on the app.   
The questions are more or less the same: 
"Is this a valid Hammer (with a chart attached)?"
"I found a Bullish Engulfing here (chart attached). What should I do tomorrow?"
"It's a Piercing and I should go long. Am I correct (again, chart attached)?"
Day by day, I see the questions repeat themselves just as the JCP on the chart. 
Of course, I'm happy to help you clear your doubts. But I'll be happier to see you being able to think on your feet. 
Sorry for being rude, but I have to say this straight to your face: YOU ARE READING THE JCP WRONG BECAUSE YOU ARE LAZY!
You only want to remember the image of the JCP. You completely ignore all other psychological requirements to form a valid JCP. 
What's even worse is that some cannot remem…

Seeing the "Invisible" Candlestick Patterns — What Steve Nison Didn't Tell You.

WARNING: The Japanese Candlestick Patterns (JCP) are not always visible. 
Yes! You read it correct. The JCP is very good at hiding itself, especially the most powerful one. By making itself "invisible", so many amateur traders (including you) are crying over the missed boat. 
The game of seeing the invisible JCP is the game of hide-and-seek. The only difference is that you're now no longer in the playground (oh, childhood!) but trading ground. 
Do you know how to win the game of hide-and-seek? You don't, apparently. Let me tell you: You first need to identify the personality of each hider. This allows you to figure out later where he could be hiding himself at. Then, GOTCHA! 
The same tactic applies to seeking the invisible JCP: 
First, you have to have a good (not basic) understanding on the core psychology of the JCP. What's the core psychology? Again, you don't know. It isthe raring bull (bear) overthrowing the exhausted bear (bull). 
Second, seek the "the …

The Myth of Gap in Candlestick Patterns (99% of Traders Don't Know!)

Hey. I hope your last week is concluded with a decent profit. 
No worries if it's not because I'll help you. Your hatred on me doesn't matter, I'm going to help you anyway. 
Before we begin, let me ask you a question:
How many of the Japanese Candlestick Patterns (JCP) I introduced have at least one gap in their formation? 
Give me the answer real quick! 
Eight. They are Bullish Engulfing, Bearish Engulfing, Piercing, Dark Cloud Cover, Three White Soldiers, Three Black Crows, Morning Star and Evening Star. 
More often than not, you can't recognize these eight JCP as easy as the Hammer and Shooting Star. Why? The gap. 
No, the problem is not the gap. Instead, the problem is absence of the gap. 
What do I mean by that? Let's flash back to the conventional formation of the eight JCP: 

Did you see the gaps? No? A gap is simply the empty space between the closing price of the previous candle and opening price of the next candle. 
Listen. If the JCP on the live chart is formed…

Is Your Chart Handsome or Ugly to Trade the Candlestick Patterns?

Hey, my boys and girls! Before we dig into the topic, please open the simulator (the fourth tab on your JCP app) and make a few trades. It will help you to better understand today's topic.
Awesome! Now, can you spot one similarity of those charts? Don't tell me they're all candlestick charts. Though you're correct, technically. 
Still struggling? Okay, let me reveal it. 
Those charts areHANDSOME
Yes! Handsome.
The word "Handsome" is used intentionally to create an impression so that you can remember it better. Handsome here simply means the candlesticks areregular and well organized.
Need some examples of handsome charts? Here you go.

These are the type of charts that you want to trade the Japanese Candlestick Patterns (JCP) on. In fact, you should only trade the JCP on the handsome charts. The handsome charts will often make you easy money.If you can't make money on the handsome charts, you're not handsome (No, I din't say you're ugly.)
On the cont…

How to Exit a Profitable Position? (Part 2)

Previously, we talked about the ONLY two ways to exit a position. 
Your way and the market way. 
What is the market way? It's simple. Do whatever the market tells you to do. Follow the sentiment of the market. Listen to the market just as you listen to your parents (many of you don't).
When the market whispers to you:"Hey trader, it's time to exit."You really should get out. As fast as possible. The market is not your home where you disobey your parents and still have them love you. You disobey the market, you pay the price. Fair enough? You naughty kid!
"But I can't hear the market's whisper."
"That's not because you're not listening. But you don't know how to listen."
"Can you tell me how to listen to the market?"
"You know I'll always say YES to you."
The market's whisperalways, always, alwayscomes in the form of Japanese Candlestick Patterns (JCP) formation. 
First of all, let's recall the two typ…

How to Exit a Profitable Position? (Part 1)

There are only two ways to exit a position - your way and the market way.
You can’t find a third way.
Your way requires you to have a predetermined profit target. 1x, 1.5x, 2x, 2.5x, 3x or even 10x of the risk taken, it’s completely up to you. I’ll assume that you’ve established a solid rationale for each of your profit target set.
If you set it at below 1x, I’ll be envy that you’ve got a strategy with super high win rate to justify the risk. My king, could you please share with me?
If you set it at 10x or higher, come on, man! Are you sure that's even realistic?
However, once the profit target is set, you must 100% commit to it. There should be no room for tolerance. You should not adjust it until the position is closed. Any attempt to lower or raise the profit target when the position is open is unethical. It is a sin. Why? Because it will disrupt you from being disciplined.
“I’m sure it will continue to go up. I don’t want to miss any profits. Let me just raise the profit target a bi…

Unspoken Secret: The Perfect Time Frame For Trading Candlestick Patterns

...So, we have the same burning question from all over the world:
Trader A: "What is the best time frame to trade the Japanese Candlestick Patterns (JCP)?"
Trade B: "The JCP changes with the change in time frame. A reversal JCP in a particular time frame may be no pattern in another. How to decide the best time frame to use?"
Trader C: "If you were given a 5-min, 15-min and 4-hour time frame, which one would you use to trade the JCP?" (This guy is pretty smart, huh? He asked a hypothetical and funnel question to limit the choice of my answers and attempt to get the desired one.)
Yes! I can't agree more. A Hammer on a chart could be a Shooting Star on another with different time frame. This can affect your trading decision badly.
If you don't get it, take a look at these charts:
If you were on this 4-hour chart on 20 October at 12am, you could have caught the Bearish Engulfing and made a decent profit.Now, look at what happened in the shorter time frames: