Candlestick Charts

Who this book is for

In this book I aim to introduce candlestick analysis to anyone from an absolute beginner

to an experienced market professional who has a working knowledge of charting. The

language should be simple enough for a novice, but shouldn’t exclude those with more

experience, as my aim is to change your viewing of a candlestick chart into a search for

the answer to the perennial question “Who’s controlling the market: the bulls or the

bears?” Ideally, you will have some knowledge of the markets, and even more ideally you

will be a cynic about technical analysis, and this book will convert you!

What the book covers

After a brief introduction I will spend a good deal of time looking at three very different

basic shapes of candlestick to get a firm grip on the principles involved.

Then I will take a more broad-brush approach to cover several other patterns that can

signify reversals or continuations of trend, focusing particularly on the powerful reversal

patterns.

In later chapters I will expand on several aspects of candlestick analysis and their uses in

practical trading situations. Candlesticks can be used over different time frames and we

will look at their application whether you are a short-term trader or a long-term money

manager. I will end by explaining how candles can be used for entering and exiting trades

when used in conjunction with support and resistance levels as well as with other basic

forms of technical analysis such as momentum indicators.

The book does not go into the more esoteric forms of candlestick charting – there are a

wide variety of advanced candlestick patterns that can take years to learn – nor does it

cover hybrid methods such as Ichimoku charting, which is a subject in itself. However,

close study of this book should enable anyone to use candlesticks in their analysis of the

markets, and improve their trading and decision-making