The easy-to-use guide to interpreting candlestick charts and derivative markets
Candlestick charts are an effective way of visualizing price movements and, due to the increased interest in the complex derivatives market, they are being used more and more widely. A combination of a line-chart and a bar-chart, where each bar represents the range of price movement over a given time interval, candlestick charts are most often used in technical analysis of equity and currency price patterns. A guide to the most used charts, The Candlestick Glossary is arranged in an easy-to-use manner, providing a quick reference for those new to the field.
Candlestick charts are formed with the help of the opening, high, low, and closing price of the day—if the opening price is above the closing price then a filled candlestick is drawn, and these charts are visual aids for decision making in forex, stock, commodities, and options trading.
*Contains alphabetical explanations of over 200 candlestick and related terms
*Includes daily charts of 50 companies, and six-month charts for comparative explanations of candlesticks with Western-style technical indicators
*Written by Michael C. Thomsett, author of over sixty books and hundreds of articles, including the bestselling Getting Started in Bonds, also published by Wiley
*Enhanced eBook editions offer video tutorials, test-yourself quizes, and full-color/interactive charts and graphs, available for purchase separately.
A practical and concise resource for anyone new to this way of representing derivatives, The Candlestick Glossary presents sometimes confusing concepts in a format that is easy to understand and digest.
About the Author
Michael C. Thomsett is a financial writer with over sixty books and hundreds of articles to his credit, including the eight editions of Getting Started in Options, as well as Getting Started in Swing Trading, Getting Started in Fundamental Analysis, Getting Started in Property Flipping, and Getting Started in Rental Income. He has been a management consultant in the securities industries and is an active options trader.
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Table of Contents:
Introduction: The Value of Candlestick Charting vii
Chapter 1: Types of Charts 1
Chapter 2: The History of Candlesticks 11
An Era of Commerce and Growth 11
The God of the Markets 12
Candlesticks Come to America 13
Chapter 3: Candlesticks and Their Attributes 15
The Importance of Long Candlesticks 18
The Opposite: The Extremely Narrow-Range Session 18
Attributes Missing in Candlestick Analysis 19
Chapter 4: Pitfalls of Candlesticks 21
Chapter 5: Confirmation 29
Chapter 6: The Six Basic Candlesticks 31
Chapter 7: Candlestick Alphabetical Entries 36
Chapter 8: Noncandlestick Confirmation Indicators and Terms 246
Appendix: Bloomberg Functionality Cheat Sheet 370
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