Japanese Candlestick Charting Techniques, Second Edition by Steve Nison
The author of Japanese Candlestick Charting Techniques is quite knowledgeable regarding the subject of using candlestick charting for success with stock market charting. This practice began in the 1600s and became popular in Japan’s rice trade. Intense and in-depth detailed information given by the author is what puts this book on the best-seller list.

What is a Candlestick Chart?
A candlestick chart is a type of bar chart used to describe price movements of a financial instrument over time.  The chart shows the range of prices at a point in time.  So while a traditional bar chart may show a point for the close a cande stick chart will show a series of vertical lines representing the day's range of prices.  

Topics
The book covers topics such as the difference between classic bar charting and the Japanese candlestick charting, blending together technical indicators and analysis techniques with candlestick analysis, the basics of charting styles, examples of price movement analysis, in-depth examples on advanced techniques, as well as explaining each pattern thoroughly.

The book details using candlestick charts with indicators such as relative strength, stochastics and moving averages. Visual charts are presented to help you in understanding candlestick charts and patterns. The patterns on these charts are given names, which is useful in remembering them. Although these examples pertain to futures for the most part, they also apply to equities.

Summary
Each topic is thoroughly broken down and explained. Beginners will find this book an indispensable tool to have alongside other tools, as the explanations are so clear and detailed, the novice, as well as the expert, will discover the indicators that are important in candlestick charting, and why they are either weak or strong. The author then provides solid techniques to use, as understanding of market behavior is gained. The book is well-written and highly recommended for both the novice and the expert alike, as the author covers everything from the basics to the more advanced techniques with Japanese candlestick charting.

Leave a Reply