Japanese Candlestick Charting Techniques by Steve Nison
Being developed in the USA and partially in Europe, western technical analysis was ultimate for many of the luminary traders and analysts from the West. During 1950-1990 the technical analysis utilizing bars to depict history price changes (barchart) was used in great depth and detail for plotting the charts. This type of analysis was dominating until the beginning of the 1990s when Candlestick Charting Techniques by Steve Nison was published.
The first book of the market analysis expert devoted to candlestick charts and combinations that may emerge while trading set the Western world agog. Used to depict stock market movements, candlestick analysis was well known to the Japanese for many centuries though. However, Steve Nison could tame and reveal the unique type of analysis to the rest of the world. Now it is applied by traders worldwide being a versatile tool of fundamental analysis.
The key feature of the Japanese Candlestick Charting Techniques is that the book describes and detects the original approach to the global financial markets. Although candlestick charts are well distinguished now as, say, the bar charts, this book is still relevant since the author succeeded in describing the peculiarities of working on the market based on on the Japanese candlestick analysis.
The first part of the book portrays the basic types of candlestick models and their combinations observed on the futures markets. A great many models and possible price movement are presented in a readily understandable format furnished with fine examples aimed to simplify the process of study. Great attention is paid to how the candlesticks are shaping up regarding to the opening/closing prices, lows/highs as well as gap absence.
The second part of the book tells how to benefit from synergies between candlesticks and oscillators of technical analysis. The RSI indicator, Stocasticks, and Volume Indicators illustrate how to use candlesticks with filtration of their signals by indicators of technical analysis.
However, note that candlestick patterns and combinations were developed and tested on futures and assets commodity markets. The use of candlestick analysis on Forex imposes certain restrictions on an analyst as one of the main conditions for the majority of the models - the price gap - can hardly been spotted on the currency market due to its round-the-clock operation.
At the same time, Japanese Candlestick Charting Techniques by the worldwide recognized author, Steve Nison, is a useful tool to assist in graphical interpretation of financial markets and is aimed to improve the traders' performance.