Candlestick Charting explains and demonstrates candlestick signals, including both the appearance of each but in context on an actual stock chart. It further takes the reader through the rationale of reversal and continuation signals and demonstrates the crucial importance of confirmation (in the form of other candlesticks, traditional technical signals, volume, momentum and moving averages).
Introduction:
This book describes candlestick charts in detail and then shows how they are constructed. The advantage with this visual aid is that you can find all of the price information in one daily symbol. This includes a day’s opening and closing price, the trading range, and direction (upward or downward) of movement. The candlestick also shows each day’s breadth of trading, from high to low. When you view an array of charts over a number of trading periods, you can determine in an instant whether a stock is high- or low-volatility, trending upward or downward, and most of all, when to make a trade. Collectively, this is a valuable set of statistics. Most traders who have analyzed price movement using candlesticks understand these basic attributes of candlesticks; but if this is the extent of a trader’s understanding, they need more.
Beyond the basics, this book explains how to recognize different kinds of signs, moves and patterns (bull, bear, reversal, and market) and how to employ double and triple stick formations to better understand why prices behave in a particular manner. Many of these moves and patterns are subtle and their meaning is easily lost in the more recognizable patterns most traders seek.
Candlesticks are also valuable when analyzed in combination with other indicators. For example, two factors often overlooked in price-focused technical analysis are the critical attributes of price movement and risk: Volume and volatility. This book explains how candlestick chart analysis employing these important features will help you to improve your mastery of stock trading. Advanced technical analysis can be greatly enhanced by combining candlestick indicators with the better-known price patterns and trends.
Contents:
- The Basic Candlestick
- Single Stick Signs
- Double Stick Moves
- Complex Stick Patterns
- Reversal and Continuation Pattern Analysis
- Volume and Volatility
- Buy and Sell Set-Up Signals
- Swing Trading with Candlesticks
- Spotting Trends and Using Trendlines
- Technical Indicators
Candlestick Charting: Profiting from Effective Stock Chart Analysis By Michael C. Thomsett pdf
