1apanese Candlestick Charting Techniques,

Second Edition
Do not use it alone
l came across Lhls book ln 1998 read lL reread lL and memorlzed all Lhe paLLerns 1Pe paLLerns are
lnLeresLlng and have meanlngful names
l can say LhaL candlesLlcks have kepL me away from losses 8uL you can hardly make good money
followlng candlesLlcks alone

1Pe conLlnuaLlon paLLernss are more lmporLanL Lhan Lhe reversal paLLerns 8eversals can be
Lreacherous 8eversals MuS1 be conflrmed by a break ln Lrend lndeed candlesLlcs alone can be
dangerous See lL for yourself only 33 percenL of hammers are harblngers of a reversal?Cu have Lo
comblne candles wlLh wesLern movlng averages

All ln all l have purchased hundreds of Lradlng books and Lhrew Lhem ln Lhe garbage 1hls ls Lhe one l
keep and regularly refer Lo

CandlesLlcs are superb ln calculaLlng sLops
Uellent resourUe for understanding UandlestiU Uarts
lf you have heard of candlesLlcks buL know noLhlng abouL Lhem look no furLher Lhls ls 1PL book for
you ln beauLlful form and sLyle SLeve nlson brlngs you lnLo Lhe world of !apanese candlesLlck charLs
and paLLerns llrsL glvlng you a fasclnaLlng hlsLory of Lhe blrLh of Lhe fuLures markeLs ln !apan Armed
wlLh LhaL knowledge Mr nlson delves lnLo Lhe psychology behlnd Lhe paLLerns LhaL develope ln Lhe
charL Pe provldes a Lhorough explalnaLlon of each paLLern down Lo lLs hlsLorlc name and whaL Lo
anLlclpaLe when Lhe paLLern unfolds 1here ls also a large parL of Lhe book devoLed Lo uslng candlesLlck
charLs wlLh varlous lndlcaLors le sLochasLlcs movlng averages relaLlve sLrengLh eLc ?ou name lL hes
goL lL AcLual charLs are provlded Lo vlsually enhance SLeve nlsons explalnaLlons noL only does he Lell
buL he showes you uslng varlous markeLs from coffee fuLures Lo Lhe S markeL 1hls book ls a musL
addlLlon Lo Lhe llbrary of any Lrader who relles on Lechnlcal analysls from Lhe beglner Lo Lhe masLer
Among te best -- maybe te most Uompreensive
l see a few low revlews for Lhls book and a loL of hlgh revlews and l wanL Lo chlme ln because Lheres
places candles are relevanL and places Lhey arenL l also see one revlew calllng Lhe Lechnlcal sLudles
useless whlch ls [usL lgnorance lmo nlLx follows llbonaccl 8eLracemenL Anu Lhe llbonaccl 1lme
LxLenslon llLerally Lo Lhe dlme and Lo Lhe day (one example ouL of dozens) All Lhe Lechnlcal lndlcaLors
are general guldellnes LhaL blg lnvesLors are golng Lo be Lradlng wlLh buL Lhey musL be used ln conLexL
wlLh CpLlons explraLlons (Lhe lndex quarLerlles Lhe lndlvldual sLocks eLc) Lhe pollLlcal and forelgn
pollcy cllmaLe commodlLles fuLures and especlally uSu luLures As we [usL saw Lhe uSu luLures
breaklng an lmporLanL reslsLance llne can cause a uow freefall regardless of senLlmenL lndlcaLors

CandlesLlcks have been amazlngly valuable l Lyplcally [usL use Lhem on Lhe uow and S100/300 charLs
as Lhe flrsL sLep ln forecasLlng Lhe prevalllng senLlmenL 1heyre used very dlfferenLly ln penny sLocks
whlch only have a few forces acLlng on Lhem (baslcally [usL hype level reslsLance polnLs and whlch
promoLers have how many shares) lL seems llke candlesLlcks are a blL clearer aL reveallng whaL Lhe
days overall behavlor meanL on pennysLocks buL afLer Lhe sLock ls ouL of play all Lechnlcals and candles
become lrrelevanL

Powever you canL [usL read Lhls book and lnsLanLly use Lhem experLly and see lnLo Lhe fuLure LCL ?ou
work on lLyou begln Lo see Lhem as a language and undersLand Lhe subLleLles and how Lhey lnLeracL
wlLh volume Lo send you a message abouL whaL Lhe mob was dolng LhaL day 1haL glves you an ldea of
whaL ls llkely Lo happen Lhe nexL day lf you were Lradlng ln a vacuum 1heyre one Lool ln many and l
Lhlnk everyone needs Lo read 1PlS speclflc book 1he paLLerns of candles arenL glven meanlng arblLrarlly
cerLaln Lypes of Lradlng does speak lL says wheLher Lhe bulls or bears are wlnnlng Lhe lmmedlaLe
baLLle and leLs you be beLLer prepared Lo spoL a conflrmaLlon of whaL Lhe candles and lndlcaLors
suggesLed was sLaLlsLlcally more llkely so you can Lake acLlon Lo proflL

1hls one would go ln my llsL of Lhe dozen books you absoluLely have Lo read and know before you sLarL
Lradlng Lhe flnanclal markeLs

**?eah Lheres a loL of huge LexLbooks you need Lo be readlng lnsLead of waLchlng slLcoms ) Maklng
money here ls hard work (or a pleasure lf you love lL as much as l do) Wall SLreeL ls packed Lo Lhe
eyeballs wlLh flnanclal genluses LhaL youre ln dlrecL compeLlLlon wlLh and a loL of Lhem geL guLklcked
and lefL for dead ln Lhe guLLer ?oure golng Lo be dolng a LC1 of work lf you wanL Lo be ln Lhe game

l see people complalnlng abouL whaL lndlcaLors work or donL work or how some book ls Loo
expenslve and l know lnsLanLly LhaL Lheyre one of Lhe hundreds of Lhousands of blLLer people who are
loslng aL Lhls rlghL now because Lhey LhoughL Lhere was some formula for success lf you expecL a candle
or an osclllaLor Lo Lell you Lhe fuLure youre golng Lo be blLLer and lm golng Lo have your money lf $63
ls serlously Loo rlch for your blood l donL know whaL Lo Lell you ?ou shouldnL have boughL Lhose new
sneakers when youre llvlng paycheck Lo paycheck??? CeL a llbrary card or seL up a LenL ln your
unlverslLys llbrary and move ln Lhere**

8ead up and make more conslsLenL money! 8esL of luck Lo everyone!
eyond CandlestiUs is te better version
no need Lo pay more money for Lhls book when Lhe older ls cheaper and more conclse 1ons of greaL
lnfo abouL candles buL candles are only one plece ln Lhe glanL puzzle