Japanese Candlestick Charting Techniques

Key Concepts and Strategies

Steve Nison's book «Japanese Candlestick Charting Techniques» serves as a detailed guide on using Japanese candlesticks for financial market analysis. The main concepts and strategies outlined in the book include:
1.The history and origin of Japanese candlesticks, their use in Japan for risk analysis and trading decisions.
2.The basic elements of Japanese candlesticks: the body, upper and lower shadows, and their significance in the context of market movements.
3.Various types of candlestick patterns, such as the «hammer», «hanging man», «doji», «engulfing», and others, and their interpretation for predicting market trends.
4.Combinations of candlesticks and their significance in determining trend reversals or continuations.
5.Strategies for using candlestick patterns in conjunction with other technical analysis methods to enhance forecast accuracy.
6.Practical examples and illustrations showing how to apply candlestick patterns in real market conditions.
7.The importance of context and confirming candlestick signals with other indicators and analysis methods to increase the reliability of trading decisions.