Uncle Steve Presents:

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Uncle Steve Presents
The Whole Ball of WaxThe Sticks
According to Uncle Steve
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Who is Uncle Steve?

• Started with Merrill Lynch in 1975
• Moved to Denver in 1976
• Worked for MLFPS, Paine Webber and others
• Left industry in 1990
• Mid-Life crisis period award-winning baker,
  college degree pursuit of MBA
• Cedar Creek Trading (1997) Introducing Broker
  CTA
• 30 years of developing indicators and mechanical
  systems led to lecturing, writing articles and
  giving seminars

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Why should I study candlesticks?

• Fundamental
• vs.
• Technical Analysis

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Funny Mentals All companies
tell the truth. The government never lies (nod,
nod, wink, wink). The government never releases
bad information (please dont shoot me Mr. Vice
President). There is a formula that calculates
250 fundamental circumstances and then assigns
weights and then and then The fundamental news
has made me a ton of money (well, actually
6.27 but its cost me thousands). I watch MSNBC
and Bloomberg and they tell me all the important
things to trade issues successfully (well, at
least Maria is a hot tomato). I cant wait until
tomorrow, because I get better looking
everyday.
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Funny Mentals
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More Funny Mentals
Funny Mentals
More Funny Mentals
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Decision Making Psychologists have known for
a long time that people often act in a seemingly
irrational manner and make predictable errors
when forecasting. This behavior is harmless when
it causes a zest for the home sports team. Being
overly optimistic when rooting for you team is
fun. However, when this behavior affects your
investing decisions, it can cause you to make
small mistakes that lower your return or make big
blunders that devastate your wealth. John
Nofsinger INVESTMENT BLUNDERS of the Rich and
Famous and What You Can Learn from Them
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RISK The trader is like a Masai Warrior
who each day must face the knife and
hunt the lion with only spear and bare hands. 
His success will come from relying on his wits
and instincts at the moment of truth, embracing
risk as his ally to achieve the desired outcome.
Robert Koppel - The Tao of Trading
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Technical
Trading The question for the trader is
whether it really is possible to divorce the
longer-term goal of profitable trading from the
potentially traumatic short-term effects of
incurring losses.  The answer lies in the making
of two specific commitments.  The first is the
commitment to use a technical trading system
which provides automatic entry and exit criteria
and which incorporates money management
principles.The second commitment is the adoption
of an attitude toward oneself which is supportive
of trading. Tony PlummerThe Psychology of
Technical Analysis
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A little candlestick history

• Serving the technical world since 1640
• Steve Nison introduces sticks to the west
• Format is similar to bar charts, but.
• No additional calculations (except O, H, L, C)
• Chart dynamicallya picture of supply and demand
• Interpretation of candlestick charts is based
  primarily on patterns of accumulation
  distribution (supply and demand)

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A little more candlestick history

• The Fountain of Gold The Three Monkey Record of
  Money (1755)
• Homma from Sakata
• When all are bearish, there is cause for prices
  to rise
• See no, hear no and speak no
• Learning is the gate, not the house. You first
  have to go through the gate to get to the house.
• He whose ranks are united in purpose will be
  victorious.

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Candlesticks ARE important!

• The MOOSE is Loose

www.cedarcreektrading.com
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Typical Bar Chart
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Notice the difference?
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White candles Up days
Black candles Down days
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The Shadow(s) Knows!
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A hint of a top or a bottom
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More than a hint of a top or a bottom
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Long-legged Doji
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Those who sell at a low price level after this
doji will die and become a ghost.
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Those who buy at a high price level after this
doji will die and become a ghost.
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Market is losing its breath
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Bullish Engulfing
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Bullish Engulfing
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Bearish Engulfing
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Bearish Engulfing
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Piercing Line
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Dark Cloud
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Paste this one on the wall!
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If you only learn one candle
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Shooting Stars are powerful
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The opposite of a hammer
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Preggers
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Harami inside the body of
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Oh what a beautiful morning
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Aint it lonesome when dat sun go down
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The side that knows when to fight and when not
to will take the victory
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Even beautiful things have disadvantages and
must be used with caution.
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Review Doji
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Do you see any doji?

• The MOOSE is Loose

www.cedarcreektrading.com
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Review Bullish Engulfing
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Corn Today
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Review Bearish Engulfing
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Lots of men hanging.
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Review Hammers Hanging Man
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Cant touch this
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Review Piercing Line
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The Great White North
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Review Dark Cloud
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Piercing vs. dark cloud

• The MOOSE is Loose

www.cedarcreektrading.com
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Review Bullish Harami
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Candles can take on dual identities

• The MOOSE is Loose

www.cedarcreektrading.com
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Review Bearish Harami
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The Great White North 2
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Review Morning Star
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Bottom feeding with candles
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Review Evening Star
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Stillness in the evening
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Part II

• Candlestick formations that you wont find in
  textbooks
• The ignored candle parts wicks/shadows
• Candlestick formations applied to recent charts
• Using candlesticks with moving averages (the
  trend is still your biggest friend
• Multiple timeframes

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Cedar Creek TradingSteve Karnish,
Principalwww.cedarcreektrading.com
Uncle Steve hard at work..
email cedarcreek_at_comcast.net