Level 13 - Japanese Candlesticks Trading Mastery Program

Follow a step-by-step process for each chart: download the 100 charts pdf, review, apply the decision making framework, validate your argument, and take notes.

Study these books for six to twelve months before trading charts: candle charts, real bodies, western indicators, and Mark Douglas’s psychology, then apply a 100-chart decision framework.

Apply a decision making framework to a Netflix chart, identifying dark cloud cover, last engulfing top, and bearish candle closes; use RSI divergence and ADX slope to confirm a reversal.

Analyze Bank Nifty with frypan bottom and rising windows to identify a potential long, confirming with piercing pattern, ADX, RSI divergence, and reward-to-risk considerations.

Analyze the Nifty 50 chart using the MACD histogram bearish divergence setup and inverted V formation, then confirm with resistance, ADX slope, Bollinger bands, and RSI divergences.

Analyze the S&P 500 chart: a falling window, rising ADX above 20, and red over green signal bears; enter short after the crossover with RSI and Bollinger confirmations.

Identify a bullish doji on usdcad in a downtrend, with piercing pattern, hammer-driven support, and bullish engulfing signals confirming the setup.

Analyze Microsoft chart six: a candle opens below support and closes above, signaling a bullish sign; weigh three positives against two negatives while considering ADX, RSI divergence, and Bollinger bands.

Analyze a rising window upside breakout on Cisco, weigh bullish signals including bearish engulfing, confirm with RSI and ADX, and set a stop loss at the lower window line.

Identify RSI and price trend line breakouts on chart 8, Salesforce, signaling a reversal trade with a favorable reward-to-risk. Confirm with ADX and Bollinger bands, and adjust size to 50%.

demonstrates a classic bullish pullback on the Hang Seng chart using the upper, middle, and lower bands plus the ten-day moving average, Doji confirmation, and rising ADX.

Chart 10 of SBI bank shows a spinning top after a rising window, with two favorable factors and three risks, prompting no trade and suggesting a partial exit on longs.

Identify a bearish belt hold line after an uptrend, with a bearish engulfing pattern and false breakout from resistance, signaling a reversal; confirm with RSI divergence near 2800.

This chart 12 FedEx example shows a variation of the dark cloud cover. A falling window forms resistance, guiding a short trade into potential support with a downsloping ADX.

Spot RSI bullish divergence on Airbus chart 13, note a variation of a piercing pattern, but avoid the trade due to poor reward to risk and persistent falling window resistance.

Chart 14 Shopify shows a hammer in a major downtrend; confirm prior support, watch ADX for weakening, and seek RSI bullish divergence before buying with favorable reward-to-risk.

Spot a false breakout on Procter and Gamble by applying the four-step method—establish and test resistance, seek a breakout, then wait for closes back below resistance, mindful of rising window.

Apply a Bollinger bands squeeze on Coca Cola: bandwidth below 5%, breakout, then fakeout; wait for volatility, RSI under 30, and ADX rising before shorting after a window break.

Confirm a bullish engulfing pattern on the FTSE chart 17, with prior support and an RSI failure upside swing signaling a buy.

Spot a bullish engulfing pattern on Costco that confirms prior support, offering a favorable risk-reward with ADX, RSI divergence, and Bollinger bands confirmations toward a sash exit.

Observe a strong bullish opening and rising window as support, while a falling window acts as resistance, illustrating millimeter perfection and the risk of price getting stuck between windows.

Analyze chart 20 on Lenovo, identifying a gravestone doji after an uptrend and related patterns like harami cross, bearish engulfing, hanging man, supported by RSI divergence.

Analyze a bearish RSI downside breakout with a falling window breaking support, signaling oversold conditions and a continuation trade, supported by ADX above 20 and rising slope.

Analyze Citigroup chart 22 using RSI and ADX to confirm short continuation, note rising ADX, weakening RSI, a falling window, and a support breach that becomes resistance.

On chart 23 PayPal, a falling window forms resistance with a bearish engulfing pattern, while a rising window provides support; 2.5 reward-to-risk target guided by ADX, RSI, and Bollinger clues.

Shows how a Pepsi chart illustrates a price breakout plus RSI breakout with rising window and trend lines, plus ADX and Bollinger confirmations, and stop-loss risk management.

Chart 25 Britannia shows a long green real body forming a support zone, with piercing-pattern cues and a poor reward-to-risk, signaling cautious reversal potential.

Analyze a Walmart chart example to explore a piercing pattern and its limitations, including rising window, bullish engulfing, multi-tested support turning resistance, risk factors, and the power of candlestick patterns.

Identify a triple top variation with a neckline break, supported by RSI divergence and a declining adx, signaling a potential reversal trade.

Learn two variations of a false break on Colgate, with resistance testing, a break and close below the blue line, plus RSI divergence and ADX downward for a short setup.

Explore chart 29 Caterpillar to learn how a candle pattern confirms resistance with price confirmation, including a falling window, a bear sash pattern, and a dumpling top.

Analyze chart 30 BMW as an RSI downside failure swing, with a cross above 70, a lower high, and a close below the blue low line, plus four in-favor signals.

Analyze a variation of the three black crow pattern on American Express, noting a rising window and an unconfirmed hanging man, leading to avoided trade despite bearish setup.

Explain a bull line trade on the DJIA: green above red, ADX rising above 20, and a rising window indicating a continuation pattern, while avoiding falling windows and poor reward-to-risk.

Identify a high-probability classic piercing pattern on chart 33 Ultratech and confirm reversals with RSI divergence, ADX decline, price near the lower Bollinger band, and a round number like 5700.

A millimetre-perfect shooting star confirms resistance from a falling window, signaling likely price decline. However, windows between entry and target reduce reward-to-risk, so the trade isn’t favored and isn’t taken.

Showcases a bearish engulfing pattern with a held resistance line, outlining a trade setup with stop loss, plus RSI bearish divergence, ADX, and Bollinger bands as confirmations.

This lecture highlights a MACD bullish divergence on Disney chart 36 with a rising window, and outlines a four-step decision process: favorable factors, unfavorable factors, confirmations, and stop-loss.

Copper chart shows a golden cross with 26-day slow and 13-day fast moving averages, signaling a bullish continuation trade, with stop loss based on the middle Bollinger band.

Identify the star candlestick, a spinning top with non-touching real bodies signalling a reversal to exit or partial exit; then watch for multi-tested resistance and ADX above 20 before trading.

ExxonMobil shows a classic box range with multi-tested support and resistance, a rising window, and a breakout, with price hovering near the high and a caution about falling windows.

Naspers shows a classic double bottom outside the lower band. Bull sash pattern appears, RSI divergence is not perfect, and resistance warns against the trade.

Shows a powerful RSI bullish divergence with price falling while RSI rises. It features a hammer-like candle and bull harami, but a window and resistance temper the entry.

Identify the usd/jpy daily tweezer bottom variation with two matching lows and a small real body signaling reversal, reinforced by a bullish engulfing pattern and key risk considerations.

Chart 43 for Lufthansa shows a bull sash variation and a bullish engulfing pattern, signaling bull strength as candle bodies diminish, with entry and target outlined.

Chart 44 shows a meta example of a normal falling window with five favorable factors, including breaking rising and prior supports and a long black body.

Chart 45 shows a stochastics bearish divergence where price rises and the fast stochastics falls, along with a shooting star variation and a bearish engulfing pattern.

Examine Adidas chart 46 to identify a strong bearish opening and patterns like bearish engulfing variation, bare separating line, and sash variation, with ADX and RSI divergence for confirmation.

Learn a bullish pullback trading setup on Philip Morris using Bollinger bands, a rising 10-day SMA and ADX strength, with bearish RSI divergence as a caution.

Reject a trade quickly when a high wave candle near a window under a bull harami signals avoid long or short entries, and do nothing while waiting for the chart.

Explore candlestick patterns like hanging man, dark cloud cover, and bear harami on Amazon, and learn how price action and window support guide short trades with three-to-one setups.

chart 50 shows a bull harami, a candle pattern that signals closing or scaling back rather than initiating a trade in a strong downtrend; ignore this trade as market consolidates.

Analyze bitcoin price action using a bullish engulfing pattern confirming prior support, a morning star variation, and RSI divergence with a 2-to-1 target.

Analyze a downside breakout using RSI and price trend line, identify a bearish engulfing pattern and false breakout, and use Bollinger bands and RSI for confirmation before a reversal trade.

identify a falling window downside breakout with broken support, supported by adx strength, rsi weakness, and a downward sloping Bollinger band.

Chart 54 on Airtel shows six candlestick signals for a bearish reversal, including last engulfing top, bearish engulfing, bear sash, and bear harami, with a death blow confirming the move.

Bata chart shows a bullish engulfing pattern confirming prior support with price confirmation. Weigh trend, resistance, and cautious sizing, noting RSI divergence and 1800 as a key support level.

Evaluate chart 56 usdchf as a variation of the three white soldier pattern with deviations in openings and shadows, and a questionable downtrend near resistance.

Chart 57 shows the sleeping giant bullish setup, with ADX crossing above 20 over four candles, signaling a bullish trend and a rising middle band with a bullish engulfing pattern.

Identify a bare harami or bare harami cross and a bearish engulfing pattern on Mitsubishi chart 58, while recognizing a rising window into support that rejects the trade.

Analyze chart 59 for NTPC: a candle opens above resistance but closes below, signaling a bearish move; despite cues, use a small position with ADX down and RSI divergence checks.

Spot a MACD histogram uptick signaling bullish momentum and a possible morning star if the candle closes above its midpoint, with a 3:1 reward-to-risk and cautious 0.25% capital risk.

Analyze a downside breakout on chart 61 using a bearish engulfing pattern, price window, RSI breach, and a weakening ADX trend, with 0.25% capital risk and Bollinger band considerations.

Spot a box range breakout on chart 62 with Google, where the $100 round number provides support under a rising window and culprit candle confirms breakout with adx above 20.

Evaluate a morning star setup within a steep downtrend, weigh favorable and unfavorable factors, seek price confirmation, and understand risk-reward before waiting out a long trade.

Identify a MACD histogram bullish divergence in Pfizer chart 64, where price falls while the histogram rises, supported by RSI and MACD divergence and Bollinger band considerations.

Study a gold chart at the 2000 round number where a shooting star signals a bearish trade. Use ADX down, RSI divergence, and bearish engulfing for 3:1 reward to risk.

Identify bullish divergence on HDFC Bank using 14-period stochastics, a bullish candle off support, and factors like RSI divergence, Bollinger middle band slope, and round numbers to decide trade size.

Explore crude oil chart 67, using adx downtick from the top, shooting stars, and red and green line crossovers to identify a trend losing steam and a false breakout.

Identify a bearish pullback on the Nikkei via a lower-band breakout, a test of the middle band, a red candle, and down-sloping middle and upper bands, with ADX confirming continuation.

Spot a powerful Apple trade using a rising window support, piercing and classic piercing patterns, and engulfing bottom confirmation, highlighting favorable risk-reward amid a strong downtrend.

Chart 70 HDFC shows an inverted hammer signaling strong support and bullish implication, confirmed by a subsequent inverted hammer and price action cues with ADX, RSI, and Bollinger bands.

Chart 71 Mercedes shows an rsi upside breakout through a confirmed resistance, after a shooting star, with rising rsi and upsloping adx guiding a conservative stop near prior resistance.

Natural gas chart 72 shows a dead cross with 13- and 26-day moving averages, but a rising window prompts skipping the short setup to follow trading rules.

Explore a variation of a triple top on MG stock in India, with a neckline break, ADX decline, bearish crossover, and RSI divergence, emphasizing risk-aware entry and reward-to-risk assessment.

Chart 74 for Micron reveals a bottom with RSI divergence and a falling ADX, plus a hammer candle and a long white body, with 14-period RSI/ADX and 20-day sma guidance.

Observe the DAX index forming a dumpling top as price shifts from higher highs to lower highs with a falling window, signaling a powerful downward move.

Assess RSI bearish divergence and dark cloud cover without Bollinger bands or ADX, identify a false breakout near 270, and seek confirmations before risking up to 0.25% of capital.

Chart 77 shows a dark cloud cover pattern that aligns with a MACD histogram downtick, highlighting MACD as a leading or coincident indicator like the RSI.

Identify a variation of the bullish belt hold line with an upper shadow, alongside a bullish engulfing pattern after a downtrend. Note resistance, a price window, and a low reward-to-risk.

Analyze Sensex chart 79 to identify a rising window and breakout, with bullish signs, resistance from a bearish engulfing pattern, and confirmations like ADX, RSI, and a breached round number.

Identify a bearish pullback on chart 80 CAC: price breaks below middle band with a red candle, enter at middle band, stop at band midpoint, target lower.

Apply a window-breaking setup on Tata Steel: a falling window followed by a rising breach signals bearish bias, reinforced by shooting star, dark cloud cover, and a dumpling top.

Explore PetroChina chart 82’s four-step false break setup, confirm with a bullish engulfing pattern at prior support, and validate entry with ADX, RSI, and Bollinger indicators.

Chart 83 ITC shows the four-step false breakout method—establish and test support, break it, then close back above—plus patterns like bullish engulfing, while a falling window signals bears in control.

This JP Morgan chart shows a price breakout confirmed by RSI and a rising window breaking resistance, but a sub-20 ADX filter prompts rejecting the trade.

Bajaj Finance charts a MACD downside crossover with a bearish window and inverted U formation indicating resistance, forming a continuation trade supported by ADX, RSI, and MACD exit signals.

Identify the last engulfing bottom after a downtrend and wait for confirmation. Watch for a break above resistance or a bullish engulfing variation to enter.

Identify a powerful RSI bearish divergence on Axis Bank chart, with a shooting star confirming prior resistance, ADX sloping down, bearish engulfing pattern, and a round-number zone near 660/650.

Analyze Bajaj Auto chart 88, spotting macd bearish divergence, a triple top with dark cloud cover and Bollinger bands, plus RSI divergence and a reward-to-risk setup with entry and targets.

On chart 89 of Asian Paints, a long red real body signals potential resistance with open near the high and close near the low, plus a bearish engulfing pattern. Evaluate with ADX sloping down, no RSI divergence, no window in between, and trade with a small position since prior resistance is not confirmed.

Chart 90 Oracle shows a box range, falling window, and breakout with a bearish candle. Target and stop above the window; ADX up, RSI weakness, Bollinger downtrend confirm.

Identify four bullish signals in chart 91: rising window, macd bullish crossover, bullish divergence, and a hammer, but beware resistance and a poor reward-to-risk; avoid extra confirmations in risky conditions.

Analyze a Bollinger bands squeeze strategy on Nvidia, illustrating a breakout, a fake out, a rising middle band, and continuation-trade considerations.

Analyze a tweezer stop pattern on EURUSD, noting bear harami and hanging man. No trade here; exit longs or wait for stronger confirmation on higher timeframes.

Explore how a dark cloud cover confirms a change of polarity, turning support into resistance on Tesla, with caution on windows and emphasis on conservative risk management and stop loss.

In chart 95 of GBPUSD, the evening star forms, but the reward-to-risk is poor and no trade is advised as price has already traveled and targets are not reached.

Chart 96 on Kotak Bank shows double bottom with RSI rising and ADX falling, signaling strength. Yet a market window, respected, leads to rejection when broken and price stays flat.

Explore a variation of the triple top with a neckline break, where ADX above 20 and rising and RSI weakness confirm a downtrend, guiding a strong entry and exit.

Chart 98 shows silver signaling an upside polarity change where resistance becomes support, confirmed by a candle pattern, a picture-perfect trade with tight reward-to-risk, profits booked early.

Analyze IndusInd Bank chart patterns, including star, high wave, spinning top, and doji, to identify morning star setups and false breakouts with clear entry and risk-reward.

Dive into chart 100 with wipro, showing an adx sleeping giant setup from under 20 to above 20, a falling window, bearish signal, and bollinger bands guiding a downtrend trade.

Revisit the decision making framework by weighing trade factors, adding confirmations, and making a subjective entry decision while applying risk, money management, and stop loss, using templates and pdfs charts.

Apply the decision-making framework to daily candlestick charts, practice 100 live trades with printouts, and maintain a trading journal to master rejection and disciplined trading.