Table of Contents
Introduction vii
Chapter 1 The Case for Candlesticks 1
Buy and Hold Leads to Unnecessary Losses 1
Trader Psychology 4
History of Candlestick Charting 6
Summary 7
Chapter 2 Candlestick Charting in Technical Analysis 11
The Role of Technical Analysis in Trading 12
Charting Styles 15
Summary 20
Chapter 3 Candlestick Construction and Basic Candle Lines 23
Candlestick Construction and Components 23
Candle Types 26
Summary 33
Chapter 4 Candlestick Reversal Patterns 37
Strong Signal Patterns 38
More Subtle Patterns 57
Summary 74
Chapter 5 Candlestick Continuation Patterns 79
Windows 80
Tasuki Gaps 82
Separating Lines 85
Neck Lines 88
Thrusting Lines 93
Rising and Falling Three Methods 96
Summary 99
Chapter 6 Sakata's Strategies and Longer Term Candle Patterns 103
Sakata's Strategies 104
Longer Term Candle Patterns 116
Summary 126
Chapter 7 Basic Technical Analysis 129
Trends 130
Support and Resistance 139
Gaps 150
Summary 154
Chapter 8 Candlesticks and Momentum Indicators 157
Momentum Indicator Basics 158
Oscillators 158
Summary 184
Chapter 9 Candlesticks and Volume 187
Volume Patterns 188
Money Flow Index 193
Accumulation/Distribution Line 195
Chaikin AD Oscillator 198
Chaikin Money Flow 200
Volume Percent Positive 202
Summary 207
Chapter 10 Weight of the Evidence-Trading Examples 211
Trade Presentation Format 212
Summary 224
Conclusion 229
Final Exam 231
Answers to Quizzes and Final Exam 237
Index 239
