Synopsis: This easy-to-read guide provides a clear understanding of Japanese Candlestick Charting, an increasingly popular and dynamic approach to market analysis. Steve Nison, known around the world as the “Father of Candlesticks, uses hundreds of examples that show how candlestick techniques can be used in all of today's markets. Traders will learn how candlestick charting can be used to improve returns and help decrease market risk
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Jacket Description: Charting techniques used by the Japanese for over 100 years are explained for today’s traders and investors in: JAPANESE CANDLESTICK CHARTING TECHNIQUES, SECOND EDITION: A Contemporary Guide to the Ancient Investment Techniques of the Far East Steve Nison Completely informative and global in its outlook, Japanese Candlestick Charting Techniques, Second Edition provides an in-depth explanation of candlestick plotting and analysis. This exciting book exposes the reader to the practical applications Steve Nison gained from years of study and research in this now popular and dynamic area. Today, almost all charting packages include candle charts. This book contains hundreds of examples that show how candlestick techniques can be used in all of today’s markets. Through such patterns as the “dark-cloud cover” and “hanging-man lines,” traders will discover how candlestick techniques provide unique market insights. They will discover see how candles will provide early reversal signals, improve timing entering and exiting markets and can be merged with classic Western charting techniques. 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, on-line and day traders * New Western techniques in combination with candles * A greater spotlight on capital preservation. Candle charts are older than bar charts, older than point-and-figure charts, but were completely unknown in the West – until Steve Nison introduced them through his articles, seminars, and his books.
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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 BASIS 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
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