Introduced Japanese candlestick charting to the West
Steve Nison
Steve Nison, CMT, was the first to bring Japanese candlestick charts to Western traders, after a Japanese colleague at a New York brokerage sparked his interest in the 1980s; he later worked as a senior technical analyst at Merrill Lynch and a senior vice president at Daiwa Securities. He wrote Japanese Candlestick Charting Techniques (1991) and Beyond Candlesticks (1994) and heads CandleCharts.com.
What they argue
- A candle pattern's meaning depends on context: a bullish engulfing pattern at major support deserves far more weight than one in isolation.
- The more signals confirm a support or resistance level, the more likely a reversal there.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- Japanese Candlestick Charting Techniques (1991)
- Beyond Candlesticks (1994)
Nison bullish/bearish engulfing reversal switch
Rule and full recordCandles & chart patterns · daily · with Thomas N. Bulkowski
Buy after a bullish engulfing candle ends a decline; sell after a bearish engulfing candle ends a rally. An engulfing candle's body swallows the whole body of the day before.
Best risk-adjusted results against buy and hold: