Japanese Candlestick Charting Techniques

Submitted by Book Library on 7 April, 2010 - 23:24

Traditional Western methods for chart analysis (the basis of all technical analysis) use bar or points and figure charts. Yet over 100 years before these methods originated, the Japanese were using their own style of technical analysis for use in the rice futures market.

This technique - known as the Japanese Candlestick Charting Techniques because of its close resemblance to candlesticks - has recently been attracting attention because it provides unique insights into the market. This work features over 300 charts that use candlesticks alone and in conjunction with Western charting techniques, and explains their use.

This easy-to-read guide provides a clear understanding of Japanese Candlestick Charting, an increasingly popular and dynamic approach to market analysis. Steve Nison, known around the world as the “Father of Candlesticks, uses hundreds of examples that show how candlestick techniques can be used in all of today's markets. Traders will learn how candlestick charting can be used to improve returns and help decrease market risk

Completely informative and global in its outlook, Japanese Candlestick Charting Techniques, Second Edition provides an in-depth explanation of candlestick plotting and analysis. This exciting book exposes the reader to the practical applications Steve Nison gained from years of study and research in this now popular and dynamic area. Today, almost all charting packages include candle charts.

This book contains hundreds of examples that show how candlestick techniques can be used in all of today’s markets. Through such patterns as the “dark-cloud cover” and “hanging-man lines,” traders will discover how candlestick techniques provide unique market insights. They will discover see how candles will provide early reversal signals, improve timing entering and exiting markets and can be merged with classic Western charting techniques.

This totally updated revision focuses on the needs of today’s traders and investors with:

  • All new charts including more intra-day markets
  • New candlestick charting techniques
  • More focus on active trading for swing, on-line and day traders
  • New Western techniques in combination with candles
  • A greater spotlight on capital preservation.

Candle charts are older than bar charts, older than point-and-figure charts, but were completely unknown in the West – until Steve Nison introduced them through his articles, seminars, and his books.

Positive Review of Book

If you have heard of candlesticks but know nothing about them, look no further, this is THE book for you. In beautiful form and style, Steve Nison brings you into the world of Japanese candlestick charts and patterns. First giving you a fascinating history of the birth of the futures markets in Japan. Armed with that knowledge, Mr. Nison delves into the "psychology" behind the patterns that developed in the chart. He provides a thorough explanation of each pattern, down to it's historic name, and what to anticipate when the pattern unfolds. There is also a large part of the book devoted to using candlestick charts with various indicators i.e., stochastic, moving averages, relative strength, etc. You name it, he's got it. Actual charts are provided to visually enhance Steve Nison's explanations. Not only does he tell, but he shows you using various markets from coffee futures to the S&P market. This book is a must addition to the library of any trader who relies on technical analysis, from the beginner to the master.

Negative Review of Book

If you are unfamiliar with technical analysis or with candlestick charts even though you may not know how to interpret them, this book is NOT for you. It is poorly written and wordy. Don't get me wrong, there is some very good information in the book but extracting it is like pulling teeth. For example, early in the book the author uses a day chart of Wal-Mart to explain changes in the market. Too big of a leap for me. If you do buy this book I suggest skipping the body and going directly to Glossary A which contains images of the various patterns with short explanations. Then if you have any questions you can wade through the relevant section of the book. This book should be considered not much more than a very expensive reference book.

Author Biography

Steve Nison. CMT holds the distinction of introducing Japanese Candlestick Charting to the Western world. As such, the foundation of all candlestick information in America and Europe is based on the foundation of Mr. Nison's work.Regarded as one of the most foremost technical analysts in the world, Mr. Nison is not only the acknowledged master of these previously secret candlestick techniques, but is also an expert on Western technical analysis with over 30 years real world experience.

Mr. Nison's work has been highlighted in The Wall Street Journal, Institutional Investor and Barron's. He has presented his trading strategies to traders from almost every investment firm on how to apply - and profit from - these methods. He has also lectured at numerous universities and, by request, at the World Bank and the Federal Reserve.

You have candles on every platform. You may be new to candles- or even using them now. Either way it is vital to your trading success that you learn how to use them correctly. That is why Mr. Nison is dedicated to giving traders and investors the correct candlestick education with Nison Candlesticks- Candlestick training the right way. As one of his students said of Mr. Mr. Nison, "Everyone quotes the master, so why not go to the master".

Table of Contents

  1. Part One: The Basics
    • Constructing The Candlesticks
    • Reversal Patterns
    • Stars
    • More Reversal Patterns
    • Continuation Patterns
    • The Magic Doji
    • Putting It All Together
  2. Part Two: Multiple Technical Techniques
    • A Confluence Of Candlesticks
    • Candlesticks With Trendlines
    • Candlesticks With Retracement Levels
    • Candlesticks With Moving Averages
    • Candlesticks With Oscillators
    • Candlesticks With Volume And Open Interest
    • Candlesticks With Elliot Wave
    • Candlesticks With Market Profile
    • Candlesticks With Options
    • Hedging With Candlesticks
    • How I Have Used Candlesticks

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