Product Description

Japanese candlesticks are one of the most important technical tools used in the market. Candlestick Charting Explained demonstrates how candlestick charts can be used to identify and anticipate price patterns in the financial and commodity markets. A comprehensive and authoritative overview, Candlestick Charting Explained describes how to combine candlestick charts with other technical tools to identify profitable trades. Clearly written and illustrated, this is a superb book for any trader who wants to master this powerful trading system.

Specific topics include:

• Candlestick charts versus bar charts
• Philosophy of candlestick pattern recognition
• Reversal and continuation pattern recognition
• Reversal and continuation patterns using candlesticks
• Trading with candlesticks

Product Details

• Amazon Sales Rank: #208532 in Books
• Published on: 1995-07-01
• Original language: English
• Number of items: 1
• Binding: Paperback
• 300 pages

Customer Reviews

Some more depth would be nice ...
I would more accurately give this book 3 1/2 stars ...I am a firm believer in Candlestick charting - not because it is foolproof, and not for some mystical ancient timeless qualities it possesses in predicting stocks.

The simple fact is, it is much easier to recognise patterns by looking at a "candle" rather than looking at the western plot (which I find visually confusing, especially if the graphs are cramped). Using candlesticks has its flaws but overall I think it is a good way to view price data.

The book: a bit light, however substantially more depth than anything I have found for free on the web, and I have found a lot. The book takes a pattern, shows you what is likely to happen next, explains deviations from normal and also tells you to what degree confirmation recommended. It is easy to use as reference.

It gave me enough information to create my own computerised candlestick recognition software .. the book also contains statistics from their own software, e.g the percentage of times they found "hammers" or "doji" patterns - this was interesting.

I chose this book over the work by Nison because it was 1. cheaper and 2. it was recommended on an investor site as being better organised than Nisons' work ... and it is very well organised. Also nobody really grilled it in a review.

However, I still plan to purchase the books by Nison to expand my understanding ... that does not mean this is a bad book, I just want more information. I would want an entire book just on the fascinating history of the ancient inventor of candlesticks, Sakata, what a character. I would not mind reading a translation of his work. Also I would like more insights into the psychological interpretations.

I recommend taking a look at this book and at Nisons', and deciding then. It is quite a good book. But don't expect any one book to give you everything you need to become a successful trader, that will take perspective, experience and a watchful eye.

at the price the best
A great question is which is better: Nison or Morris? Nison is for those who use indicators; Morris is the purist using only volume.
Reference book? Morris gives you the picture and the explanation in an easy format and an index to find it. He also breaks the candles into groups and types. This is the valuable part of the book.
Who is more in depth? Well that's a tie with Morris winning slightly on candles & losing if you want to view the whole Japanese charting world, Kagi, Renko, 3 line break. Nison gives other Japanese charting types weight in the book which is good if you have Metastock bad if you don't. Personally I like the other methods.
So why did I give Morris the nod? As a professional trader I can't really give away an edge except that Morris is more tuned towards stocks & gives hints that Nison did not.
Nison is also a boring writer, better lecturer. Morris is a better writer, teacher.
Remember Morris gives you everything and if that's not enough then you're not reading carefully; looking over these previous reviews makes me happy because they obviously missed Morris' hints and guides. I saw them and my trading improved & I had used Candles for a long time before getting to Morris ala Nison & began to think them worthless. Now I understand their role.

Enough said.

Useful and Profitable From The First Line
As a professional money manager and author, I found this book a must have for the entire spectrum of investors.

Greg Morris is the Morris in murphymorris.com, the vehicle for technical analysis guru and frequent CNBC guest John Murphy, whose ongoing analysis and excellent history of prescient market calls places him in the Hall of Fame.

Candlestick charts are standard in most charting programs and have become the hallmark of day traders. But this is an ancient art from the Far East, which Greg was among the first to champion, and popularize. Greg studied the art in person while in Japan and learned not just the technique, but the cultural and more deeply rooted use of this useful form of analysis. It is this in depth knowledge, combined with Greg's conversational and easy to read style which makes this book a classic.

Greg is a trader, and makes this clear throughtout the book, sticking to the business at hand, and not reminiscing about his own personal glory, or useless anecdotes. The book is immediately useful and made a great difference in my own ability to analyze stocks and make trading decisions.

Especially useful and extremely important are the sections which deal with candlestick patterns which alert the trader as to potential upcoming changes in the trend. These have saved me many times, and have allowed me to both buy and sell correctly when other popular methods have not.

Just that is worth the price of the book.