Japanese candlestick charting techniques by steve nison
Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East by Steve NisonVery clear description of the basic candlestick patterns. Many of the patterns rely on gaps between closing and opening prices. This type of trading applies to equities and to other markets that have pretty clear opening and closing times -- like the Japanese Rice market where this charting technique originated. The Forex market, for all practical purposes, is free of such gaps. This difference means that many candlestick patterns have only limited application to the forex markets. Thus, while there may be quite a bit to learn about candlesticks in a market filled with gaps, the material reduces to a manageable amount when you exclude any of the patterns that require a gap of some sort.
Except for the weekend close, the opening and closing periods in forex are basically arbitrary. They retain their force, I believe, because every broker uses the same break points, at least for any chart that tracks an hour or less. The weekly and monthly charts are also the same for all traders. There is some slight variation for Daily and four hour charts, depending on the brokers time zones, but these provide only slight variations for the most part. Thus, candlestick charts work because traders all rely on the same data for the fictional opening and closing points of the bars of their charts. But that fiction is enough to make a real difference, because it makes a difference in the expectations of traders, and makes a difference on when traders are likely to make their decisions.
My main criticism is his selective examples. Anyone can pick out a chart and show how it illustrates their method. And I suppose that needs to be done. But if you look closely at Nisons examples, you will see many failed signals for patterns that had already been discussed, or that would be discussed later. Nison is very good at showing where the patterns work. He also seems to be very good at ignoring the examples in his own charts where the patterns fail.
Overall, Im a fan of candlesticks. I dont think they tell a whole lot. But they are clearer than bar charts or line charts at showing what might have happened during a time period. So, even if they dont provide much of an edge, for me they are still the clearest picture I can get.
01 Japanese Candlestick Charting Techniques, Second Edition - Steve Nison.pdf
A form of technical analysis, Japanese candlestick charts are a versatile tool that can be fused with any other technical tool, and will help improve any technician's market analysis. They can be used for speculation and hedging, for futures, equities or anywhere technical analysis is applied. Seasoned technicians will discover how joining Japanese candlesticks with other technical tools can create a powerful synergy of techniques; amateurs will find out how effective candlestick charts are as a stand-alone charting method. In easy-to-understand language, this title delivers to the reader the author's years of study, research and practical experience in this increasingly popular and dynamic approach to market analysis. The comprehensive coverage includes everything from the basics, with hundreds of examples showing how candlestick charting techniques can be used in almost any market. This is clearly one of the best investment books ever written
A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition
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See how Nison candlesticks can potentially help you achieve trading and investing success. Steve Nison is looked up to by traders worldwide as THE source for candlestick training. As the first to reveal candles to the Western world, he has helped thousands of institutional and retail traders and investors. No matter what markets you trade, candlesticks can help you make smarter and more confident decisions. Our free online training will help you get started on the right foot.