The Power of Japanese Candlestick Charts E-Book

Fred K. H. Tam

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Trading Series
• Sprache: Englisch

Seitenzahl: 261

Veröffentlichungsjahr: 2015

Beschreibung

A practical, must-read guide to candlestick charting techniques Japanese candlestick charting is a highly effective method for timing the market for short-term profits. Unlike most western techniques--moving average, relative strength index, MACD, stochastic, Bollinger bands, or Elliot waves--candlestick charting signals are based on very close analysis of product price, producing accurate buy or sell signals between two and ten periods earlier than other techniques. In The Power of Japanese Candlestick Charts, noted author and futures trading expert Fred Tam offers a full and sophisticated range of charting techniques using candlestick methodology. * Written by Fred K. H. Tam, a noted pioneer in exploring the Japanese candlestick methodology * Ideal for anyone who wants to invest or trade in both the futures and stock markets * Includes hundreds of illustrated charts The Power of Japanese Candlestick Charts is a comprehensive and valuable guide to candlestick charting that is perfect for analysts, stock or day traders, and short-term position traders.

Leseprobe

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THE POWER OF JAPANESECANDLESTICK CHARTS

Advanced Filtering Techniques for Trading Stocks, Futures, and Forex

REVISED EDITION

Fred K. H. Tam

Cover image: © iStockphoto.com/P2007 Cover design: Wiley

Copyright © 2015 by John Wiley & Sons Singapore Pte. Ltd.

Published by John Wiley & Sons Singapore Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628

All rights reserved. First edition published by Pelanduk Publications in 2001.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: [phone], fax: [phone], e-mail: [email protected].

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for any damages arising herefrom.

Other Wiley Editorial OfficesJohn Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom John Wiley& Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada John Wiley& Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

ISBN 978-1-118-73292-2 (Hardcover) ISBN 978-1-118-73294-6 (ePDF) ISBN 978-1-118-73295-3 (ePub) ISBN 978-1-118-77714-5 (o-Book)

CONTENTS

INDEX OF REVERSAL PATTERNS

INDEX OF CONTINUATION PATTERNS

PREFACE

ACKNOWLEDGMENTS

PART I: BASIC CANDLESTICK TECHNIQUES

CHAPTER 1: Introduction

Historical Background

Reasons Candlestick Charts Are So Popular Today

Construction of the Candlestick Chart

Construction of a Bar Chart

CHAPTER 2: Single Candle Types

Single Candles

The Doji

CHAPTER 3: The Umbrella Group

White Hammer or Hanging Man (Also Called White Umbrella Candle)

Black Hammer or Hanging Man (Also Called Black Umbrella Candle)

White Inverted Hammer or Shooting Star (Also Called Inverted White Umbrella Candle)

Black Inverted Hammer or Shooting Star (Also Called Inverted Black Umbrella Candle)

CHAPTER 4: Reversal Patterns

Introduction

Index of Reversal Patterns

Single Candlestick Patterns

Double Candlestick Patterns

Triple Candle stick Patterns

Multiple Candlestick Patterns

CHAPTER 5: Continuation Patterns

Introduction

Double Candlestick Patterns

Multiple Candlestick Patterns

CHAPTER 6: Summarizing Part I

Can One Trade the Market and Profit Just by Applying Candlestick Chart Analysis?

Candlestick Chart Analysis Is Best Used in Conjunction with Technical Indicators

Conclusion

PART II: ADVANCED CANDLESTICK TECHNIQUES

CHAPTER 7: Filtering with Western Indicators

Using Filtering or the Rule of Multiple Techniques

Scenario 1: In the Case of a Bull Market or Bullish Trend

Scenario 2: In the Case of a Bear Market or Bearish Trend

Scenario 3: In the Case of Overbought or Oversold Situations

Filtering with Moving Averages

Filtering with MACD (Moving Average Convergence Divergence)

Filtering with Relative Strength Index

Filtering with Stochastic

Filtering with Momentum

Filtering with Williams’ Percentage Retracement

Filtering with Directional Movement Index

Filtering with Commodity Channel Index

Filtering with Volume

Filtering with Bollinger Bands

Filtering with Elliott Wave Theory

Notes

CHAPTER 8: P.I. System Trader

The P.I. System Trader Mimics Candlesticks

Trading Rules for P.I. System Trader

Advantages of P.I. System Trader

CHAPTER 9: Sakata’s Five Methods

Sakata’s Constitution and Sakata’s Five Methods

Sakata’s Constitution (Soba Sani No Den)

The Japanese Method of Three

Conclusion

Note

CHAPTER 10: Computerized Candlestick Forecasting

The Era of Computerized Candlestick Scanning

Features of the Nison Candle Scanner

Nison Candle Highlighter on MetaTrader 4 Platform

Notes

CHAPTER 11: Conclusion: Facts about Candlesticks

ABOUT THE AUTHOR

READING LIST

INDEX

EULA

List of Tables

Chapter 4

TABLE 4.1

TABLE 4.2

TABLE 4.3

TABLE 4.4

List of Illustrations

PREFACE

Figure P.1

Gold 15-Minute (2014)—Trading cycles range from 5 to 15 candles

Figure P.2

Dow Jones Industrial Average Daily (2010)—Trading cycles range from 5 to 15 candles regardless of the periodicity of the chart