The Secret of Candlestick Charting E-Book

Louise Bedford

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 250

Veröffentlichungsjahr: 2016

Beschreibung

Most traders on the ASX are familiar with line and bar charts, but there has never before been a book written in Australia on the ancient Japanese art of candlestick charting. Louise Bedford, author of the highly successful The Secret of Writing Options, writes in a clear, concise way and uses plenty of examples to help readers understand candlesticks and use them to profitably trade the markets.

Leseprobe

Table of Contents

Cover

Title page

Copyright page

Acknowledgments

PART I: Candlestick Pattern Secrets

Chapter 1 Let’s Get Started

WHY USE CANDLESTICKS?

A QUICK HISTORY LESSON

READING GUIDE

CANDLES, LINE CHARTS AND BAR CHARTS

OPEN AND CLOSE

OTHER TIMEFRAMES

THE WHITE CANDLE

THE BLACK CANDLE

WHEN TO USE CANDLESTICKS

THE ELEMENTS OF THE CANDLE

CHAPTER REVIEWS

Chapter 2 Single-Line Candle Reversal Patterns

A WORD ON CONFIRMATION . . .

THE SHOOTING STAR

THE HAMMER

THE INVERTED HAMMER

THE HANGING MAN

THE DOJI

THE SPINNING TOP

OTHER TYPES OF CANDLES

THE MARUBOZU OR SHAVEN CANDLE

THE SHORT CANDLE

THE LONG AND DOMINANT CANDLE

REJECTION PATTERNS

BEARISH REJECTION

BULLISH REJECTION

Chapter 3 Two-Line Candle Reversal Patterns

BACK-TESTING

THE THREE-POINT BACK-TESTING PLAN

THE BEARISH ENGULFING PATTERN

THE BULLISH ENGULFING PATTERN

EXAMPLE

DARK CLOUD COVER

THE PIERCING PATTERN

HARAMI

HARAMI CROSS

OTHER INSTRUMENTS

Chapter 4 Three-Line Candle Reversal Patterns

THE EVENING STAR

THE MORNING STAR

THE EVENING AND MORNING DOJI STARS

TWO CROWS

Chapter 5 Trading Concepts and Continuation Patterns

OPPORTUNITY IDENTIFICATION

PLACING THE ORDER

MONEY AND RISK MANAGEMENT

CONTINUATION PATTERNS

UPSIDE TASUKI GAP

DOWNSIDE TASUKI GAP

RISING THREE METHOD

FALLING THREE METHOD

FINAL THOUGHTS ON CONTINUATION PATTERNS

PART II: Analysis Secrets

Chapter 6 Candles and Gaps

EXAMPLE

GAPS AS SUPPORT

GAPS AS RESISTANCE

TRAPS FOR NEW PLAYERS

Chapter 7 Support and Resistance

TRENDLINES

WHERE TO DRAW YOUR LINE

SUPPORT AND RESISTANCE CANDLES

SOME NEW PATTERNS

TWEEZER TOP

TWEEZER BOTTOM

UPTHRUSTS

SPRINGS

DOMINANT CANDLES, MID-POINTS AND CHANGE OF POLARITY

THE DOMINANT WHITE CANDLE

THE DOMINANT BLACK CANDLE

THE IMPORTANCE OF THE MID-POINT

CHANGE OF POLARITY

PSYCHOLOGICALLY SIGNIFICANT NUMBERS

Chapter 8 Western Techniques and Candles

WESTERN TECHNIQUES

MOVING AVERAGES

MOMENTUM

CONSOLIDATION AND MOMENTUM INDICATORS

THE SIROC

RELATIVE STRENGTH COMPARISON

TOP DOWN ANALYSIS

BOTTOM UP ANALYSIS

PUTTING IT ALL TOGETHER

HOW I USE THE RELATIVE STRENGTH COMPARISON

Chapter 9 Share Stages

STAGES

SUMMARY

BREAKOUT STRATEGY

OPPORTUNITY IDENTIFICATION

AN ALTERNATIVE PATTERN

CHANGES IN BEHAVIOUR

PATTERNS THAT CONFIRM A BREAKOUT

ANOTHER CHANCE TO ENTER THE TRADE

SEARCHING PROCEDURES

REAL-TIME SYSTEMS

PART III: Trading Secrets

Chapter 10 A Kindred Spirit

Chapter 11 Seven Golden Candlestick Rules

Further Education

Glossary

Index

Also by Louise Bedford

The Secret of Writing Options

Trading Secrets

Charting Secrets

First published in 2000 by Wrightbooks

an imprint of John Wiley & Sons Australia, Ltd

42 McDougall Street, Milton Qld 4064

Office also in Melbourne

© Louise Bedford 2005

The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data

 Bedford, Louise.

 The secret of candlestick charting: strategies for trading the Australian markets.

 Includes index.

 ISBN: 1 876627 28 X.

 1. Stocks - Prices - Australia - Charts, diagrams, etc.

 2. Commodity exchanges - Charts, diagrams, etc.

 3. Speculation - Australia.

 4. Stock price forecasting.

 5. Securities - Australia.

 I. Title.

 332.632280994

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should he made to the publisher at the address above.

Cover design by Rob Cowpe

Disclaimer

The material in this publication is of the nature of general comment only, and neither purports nor intends to he advice. Readers should not act on t lie basis of any matter in this publication without considering (and if appropriate taking) professional advice with due regard to their own particular circumstances. The author and publisher expressly disclaim all and any liability to any person, whether a purchaser of this publication or not, in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance, whether in whole or in part, upon the whole or any part of the contents of this publication.

Acknowledgments

The generosity of significant players in the market never ceases to amaze me! In particular Daniel Gramza, Martin Pring, David Chia, Harry Stanton and Chris Tate (www.artoftrading.com.au) have been incredibly supportive and offered practical advice and suggestions for putting together this publication. All of these men have already established outstanding reputations in the trading industry, so they have very little to gain by being interviewed for this book, or offering an appropriate word of encouragement. Their support has refreshed my view of human nature!

Gary Stone and the team at ShareFinder Investment Services supplied the Market Master software that I used to create the charts in Chapter 8. Gary’s knowledge of the relative strength comparison and the SIROC indicator has greatly assisted my own trading results. ShareFinder can he contacted at PO Box 7374, Beaumaris, Victoria, 3193. Ph: 1300 STOCKS. You can access a free demonstration disk of Market Master software by referring to www.sharefinder.com.au.

Chris Bedford, my husband, edited and corrected much of the finer detail of this book. His patience is greatly appreciated.

Thanks to The Trading Game Pty Ltd for providing the data required to create the charts throughout this publication. For more information about data, share trading, training and education, refer to www.tradinggame.com.au.

For more information about candlestick charting, please refer to my website www.tradingsecrets.com.au.

PART I Candlestick Pattern Secrets

Chapter 1

Let’s Get Started

Have you ever seen one of those ‘magic eye’ computer-generated three-dimensional pictures? At first glance it seems to be one-dimensional and quite flat in appearance. However, when you squint and stare at the picture for long enough, an incredible three-dimensional object reveals itself in vivid detail! “Oh, I can see it! It’s a space ship with little aliens inside … it’s amazing,” you exclaim, while the poor person beside you says dejectedly, “Where? Where? I can’t see a thing … ”

Once you know the trick of seeing the images, all of a sudden you can see them easily and everywhere, much to the frustration of your less-enlightened friends. The method of accessing the hidden image is almost impossible to explain until you can do it yourself.

Candlestick charting is very similar. Once you can see the information in the chart, you will probably never want to look at another type of chart again. You will excitedly talk about ‘dark cloud cover’ and ‘raindrops’ until your friends begin to think that you have taken a second job at the weather bureau.

You are about to discover a technique that has the potential to completely alter the way you view charting, yet is complementary to all of the other methods of technical analysis you might use. Technical analysis is defined as the examination of price and volume action on a chart. I predominantly use technical indicators to reach conclusions about the likely direction of share price activity, rather than relying on fundamental data (e.g. balance sheet items such as profit and loss).