21 Candlesticks Every Trader Should Know
$14.20
In 21 Candlesticks Every Trader Should Know, Melvin Pasternak has selected 21 candles that he believes every trader should know by name. These are the candles that in his experience occur most frequently and have the greatest relevance for making trading decisions. Just as knowing the name of a person helps you immediately recognize them on a crowded street, so being able to name the candlestick allows you to pick it out of a chart pattern. Being able to name it allows you to appreciate its technical implications and increases the accuracy of your predictions.
Author’s Introduction:
Candlesticks are one of the most powerful technical analysis tools in the trader’s toolkit. While candlestick charts dates back to Japan in the 1700’s, this form of charting did not become popular in the western world until the early 1990’s. Since that time, they have become the default mode of charting for serious technical analysts replacing the open-high-low-close bar chart. There has been a great deal of cogent information published on candlestick charting both in book form and on the worldwide web. Many of the works, however, are encyclopedic in nature. There are perhaps 100 individual candlesticks and candle patterns that are presented, a daunting amount of information for a trader to learn.
In my trading, I try to integrate candlestick analysis, moving averages, Bollinger bands, price patterns (such as triangles) and indicators such as stochastics or CCI to reach decisions. I find the more information which is integrated, the more likely the decision is to be correct. In this book, I have chosen to combine moving averages, Bollinger bands and two indicators, stochastics, and CCI on various charts. As we discuss individual candlesticks or candle patterns, I integrate these tools into the discussion. Hopefully, you will not only learn how to recognize candles from this book, but also appreciate how you can combine them with the traditional tools of technical analysis.
In this book my focus is on Minor trend reversals, the kind of reversal of most interest to a trader. The Minor trend typically lasts 5 to 15 days although on occasion, I have seen it stretch out to about 30 trading days. These same candle principles work equally as well, however, on 5 minute or weekly charts. It is simply a matter of adapting this information to the time frame you are trading in.
Contents:
- Candles Anticipate, Indicators Follow, Trendlines Confirm
- How To Read A Candlestick Chart Bar vs. Candlestick Charts
- Optimism and Pessimism as Shown by Candles
- Advantages of Candle vs. Bar Charts
- Candles Anticipate Short Term Reversals
- Why Candlesticks Work
- “The Rule of Two”
- Candles in Action: Dow Jones Analysis
- Candles 1-4: The Four Dojis Show Stocks That Have Stalled
- Candles 5-6: Hammer and Hangman
- Candlesticks Signal Key Reversals
- Candles 7-8: Bullish and Bearish Engulfing
- Candles Spot Key Trend Changes Before They Take Place
- Candle 9: Dark Cloud Cover Warns of Impending Market Tops
- Candle 10: The Piercing Candle Is a Potent Reversal Signal
- Candles 11-12: The Three Candle Evening and Morning Star Patterns Signal Major Reversals
- Candle 13: The Shooting Star Can Wound
- Candle 14: The Inverted Hammer Indicates The Shorts May Be Ready To Cover
- Candle 15: The Harami is “Pregnant” With Possibilities
- Candle 16: The “Full” Marubozu Is a Candle Without Shadows
- Candles 17-18 High Wave and Spinning Top Express Doubt and Confusion
- Candle 19: The Ominous Call of Three Black Crows
- The Four Types of Gaps: Common, Continuation, Breakaway and Exhaustion
- Candlestick Theory on Gaps
- Synthesis of Western Wisdom and Eastern Insight
21 Candlesticks Every Trader Should Know By Melvin Pasternak pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 83 |
| Publication Year | 2006 |
15 reviews for 21 Candlesticks Every Trader Should Know
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Amaris Zamora (verified owner) –
This is a great little book that boils it down to what works. Why buy a book for 4x the cost and end up only using about 21 of the patterns out of that book? A good explanation of the candles that have the most impact.
The mistakes must have been corrected. I checked the pages mentioned and it looked fine to me.
Keilani Benjamin (verified owner) –
There are 100 candles patterns with which traders should be familiar and 21 candles they should know by name. Knowing their names allows traders to spot them more easily and assess their implications. When faced with the need for a quick decision during the heat of trading, the trader who can name these 21 candles has a distinct advantage over the one who can’t. I would rate this up there with Steve Nisons work.
Rayne Hodge (verified owner) –
Melvin Pasternak’s 21 Candlesticks is a clear and straight forward discussion of the candlesticks that will affect the trader the most. These are the ones that every trader must know by name. Learn to increase your accuracy and make decisions with confidence.
Ember Miles (verified owner) –
Good book.
Reign Magana (verified owner) –
This book is clearly written.
Scarlett Francis (verified owner) –
Great Book.
Abner Lee (verified owner) –
the technical contents of this book on candlesticks is extremly poor and does not provide a very good explanation of the application of the various candlestick patterns.
Alora Rios (verified owner) –
an easy read, great trading strategies.. AWESOME-Get it!
Irene Allison (verified owner) –
Hope my son-in-law understands this stuff.
Harmoni Compton (verified owner) –
Good quick desktop reference for those who already know and use candlesticks; but other sites online are a better for in-depth view…(i.e. stockcharts.com). Might be useful as introductory study. Suggest the Steve Nison courses for best understanding of candlestick charting. (For those who don’t know, Mr. Nison is considered the guru of candlesticks)and I fully recommend taking his courses…sacred traders has his self directed course and study books.
Kyro Carey (verified owner) –
Very versatile handy for all situation matches well to market informative, well worth investment for investing online especially beginners. Great text
Harvey Combs (verified owner) –
I really like this book, because the candle stick patterns with the indicators, tell the story, vise the normal bar chart patterns and he make it, not expensive to purchase the book, so it is worth more money than you could buy………..Well done Mr.Pasternak.
Jared Calhoun (verified owner) –
If you are in the stock market buying and selling this book really helps you to find the top and bottom. When to buy and when to sell your stocks.
Israel Tanner (verified owner) –
EXCELLENT OVERALL BOOK. EXCELLENT QUICK REVIEW WHEN NEEDED. GOOD USE OF WORDSW.
Dennis Davila (verified owner) –
Looks Brand new no marking no wear and tear