Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition

by Steve Nison

Overview

The ultimate guide to a critical tool for mastering the financial markets
 
A longstanding form of technical analysis, Japanese candlestick charts are a dynamic and increasingly popular technical tool for traders of all skill levels. Known for its versatility, this ancient charting can be fused with every other technical tool available, including traditional Western technical analysis.
 
Japanese Candlestick Charting Techniques is the most comprehensive and trusted guide to this essential technique. Informed by years of research from a pioneer trader, this book covers everything you need to know, including hundreds of examples that show how candlestick techniques can be used in all of today’s markets.
 
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, online and day traders 
• New Western techniques in combination with candles 
• A greater spotlight on capital preservation. 

From speculation and hedging to futures and equities, candlestick charting is the next level up for both amateur day traders and seasoned technicians, and this book provides expert guidance for putting it into action.

Product Details

ISBN-13:	9780735201811
Publisher:	Penguin Publishing Group
Publication date:	11/01/2001
Edition description:	2ND
Pages:	320
Sales rank:	460,420
Product dimensions:	8.22(w) x 11.12(h) x 1.01(d)
Age Range:	18 Years

About the Author

Steve Nison is the foremost leader of the art of using candlestick charting as an analysis tool in studying market trends and making investment decisions. He owns and runs Nison Research International, a firm that provides technical advisory and on-site seminar services to major financial firms. He is a highly sought-after speaker who has presented his techniques to thousands, including members of the World Bank and the Federal Reserve.

Table of Contents

	Preface	v
	Acknowledgments	vii
	About the Author	xi
Chapter 1	Introduction	1
	What's New in This Book	2
	Why Have Candle Charting Techniques Captured the Attention of Traders and Investors Around the World?	2
	Who Is This Book For?	4
	Some Background	5
	What Is in This Book?	7
	Some Cautions	8
	The Importance of Technical Analysis	11
Chapter 2	A Historical Background	15
Part 1	The Basics	21
Chapter 3	Constructing the Candlestick Lines	23
	Drawing the Candle Lines	25
Chapter 4	Reversal Patterns	31
	Umbrella Lines	32
	Hammer	34
	Hanging Man	38
	The Engulfing Pattern	42
	Dark-Cloud Cover	49
	Piercing Pattern	55
Chapter 5	Stars	61
	The Morning Star	62
	The Evening Star	66
	The Morning and Evening Doji Stars	70
	The Shooting Star and the Inverted Hammer	74
	The Shooting Star	75
	The Inverted Hammer	77
Chapter 6	More Reversal Patters	81
	The Harami Pattern	82
	Harami Cross	83
	Tweezers Tops and Bottoms	87
	Belt-Hold Lines	93
	Upside-Gap Two Crows	95
	Three Black Crows	97
	Three Advancing White Soldiers	99
	Three Mountains and Three Rivers	103
	Counterattack Lines	109
	Dumpling Tops and Frypan Bottoms	114
	Tower Tops and Bottoms	119
Chapter 7	Continuation Patterns	125
	Windows	126
	Tasuki	134
	High-Price and Low-Price Gapping Plays	136
	Gapping Side-by-Side White Lines	139
	Rising and Falling Three Methods	142
	Separating Lines	150
Chapter 8	The Magic Doji	155
	The Northern Doji (Doji during Rallies)	158
	The Long-Legged Doji (Rickshaw Man), the Gravestone Doji, and the Dragonfly Doji	161
	The Tri-Star	170
Chapter 9	Putting it All Together	173
Part 2	Convergence	181
Chapter 10	A Cluster of Candles	187
Chapter 11	Candles with Trend Lines	193
	Springs and Upthrusts	199
	The Change of Polarity Principle	205
Chapter 12	Candles with Retracement Levels	213
Chapter 13	Candles with Moving Averages	217
	The Simple Moving Average	217
	The Weighted Moving Average	219
	The Exponential Moving Average	219
	Using Moving Averages	219
Chapter 14	Candles with Oscillators	225
	The Relative Strength Index	226
	Computing the RSI	226
	Using the RSI	227
	Moving Average Oscillator	229
	Computing the Moving Average Oscillator	229
	Using the Moving Average Oscillator	229
	Stochastics	233
	Computing Stochastics	234
	Using Stochastics	234
	Moving Average Convergence-Divergence	237
	Constructing the MACD	237
	Using the MACD	237
Chapter 15	Candles with Volume	241
Chapter 16	Measured Moves	249
	Breakouts from Boxes	250
	Swing Targets, Flags, and Pennants	255
Chapter 17	The Best of the East and West: The Power of Convergence	263
	Conclusion	267
Glossary A	Candlestick Terms and Visual Dictionary	269
Glossary B	Western Technical Terms	279
	Bibliography	285
	Index	289