Strategies for Profiting with Japanese Candlestick Charts

From the introductory concepts through sophisticated applications—the most thorough, authoritative guide to harnessing the power of Japanese candlesticks

The book that introduced traders everywhere how to unleash the awesome power of Japanese Candlestick is now better than ever! Written by the visionary who introduced candlesticks to traders in the West, this new edition of the international bestseller has been fully updated and revised for today’s more competitive and fickle markets. Your complete guide to all things candlesticks, it fills you in on what they are and where they come from, how to read and interpret them and how to use them to anticipate and capitalize on price moves and market changes with a degree of accuracy you never imagined was possible!

• A rare opportunity to learn about this powerful charting technique from the man who introduced candlesticks to the West and the world’s premiere expert
• Covers the most important candle patterns and breaks each down into its component parts with crystal clear explanations of what each part indicates
• Details strategies for combining candlesticks with other technical tools to spot big moves and find optimal exits
• Delivers expert advice and guidance on how to avoid costly candlesticks mistakes that even seasoned traders can make
• Shares proven strategies for using candlesticks for hedging and managing investment risk, along with techniques for making candlesticks a valued tool for swing and day trading

Publisher's Preface v

How to Use This Book vii

Meet Steve Nison ix

Introduction xi

Chapter 1: The Basics: Candlestick Construction 1

Chapter 2: Small Real Bodies and Long Sessions 13

Chapter 3: Analysis Based on Shadows 35

Chapter 4: Shooting Stars and High Waves 53

Chapter 5: Engulfing Patterns 69

Chapter 6: More Two-Candlestick Patterns 85

Chapter 7: The Harami and Morning or Evening Star 101

Chapter 8: Looking Through the Window 119

Chapter 9: Mysteries of Support and Resistance 139

Chapter 10: More Support and Resistance Insight 157

Chapter 11: Retracement and Divergence 177

Chapter 12: Head and Shoulders Analysis 193

Chapter 13: Candlesticks in Context 211

Resources 239

STEVE NISON, CMT, is founder and President of Candlecharts.com which provides premier educational products and trading services. Traders and investors everywhere have discovered the power of candle charting because of Steve's groundbreaking work. Nison, the very first to reveal the startling power of candlestick charts to the Western hemisphere, is acknowledged as the leading authority on the subject. Before Nison's work, not one charting system in the Western world had candlestick charts. Nison's work has been highlighted in the Wall Street Journal, Institutional Investor, and Barron's. Nison is also the author of Japanese Candlestick Charting Techniques, Second Edition, The Candlestick Course, and other popular trading books and videos.

THE TRADER'S GUIDE TO JAPANESE CANDLESTICKS
The Full Six-Hour Video Course and Text

What are Japanese Candlesticks—and why should traders use them? Steve Nison, expert in candlesticks, will help you understand and master this powerful tool with high-impact results in this workshop. Nison is the premier expert on candlesticks in the world, and now you can benefit from his expertise in the comfort of your own home, learning at your own pace.

Drawn from Steve Nison's popular one-day seminars for select groups of traders, this workshop includes six hours of video presentation, a full manual on how to trade candlesticks, and supplementary materials to help you become a better trader. Inside, you'll discover:

• The most important candle patterns
• How to spot market turns using candle lines
• How to use the power of candles for online trading
• How to combine Western technical indicators with candlestick charts for increased profits
• Strategies for trading with candlesticks
• How to reduce risk with candlestick charts
• Swing and day trading strategies with candlestick charts
• and much more!

This is the foremost guide to technical trading success from the foremost expert on candlesticks. From the introductory concepts through sophisticated applications of candle charts in everyday trading, you won't find a more thorough source for learning to read, interpret and apply this amazing analytical tool.