The power of Japanese candlestick charts

PART I BASIC CANDLESTICK TECHNIQUES

CHAPTER 1 Introduction 3

Historical Background 4

Reasons Candlestick Charts Are

So Popular Today 5

Construction of the Candlestick Chart 7

Construction of a Bar Chart 8

CHAPTER 2 Single Candle Types 11

Single Candles 11

The Doji 35

CHAPTER 3 The Umbrella Group 59

White Hammer or Hanging Man

(Also Called White Umbrella

Candle) 59

Black Hammer or Hanging Man

(Also Called Black Umbrella Candle) 60

White Inverted Hammer or Shooting

Star (Also Called Inverted White

Umbrella Candle) 60

Black Inverted Hammer or Shooting Star

(Also Called Inverted Black Umbrella

Candle) 61

CHAPTER 4 Reversal Patterns 67

Introduction 67

Index of Reversal Patterns 69

Single Candlestick Patterns 70

Double Candlestick Patterns 90

Triple Candlestick Patterns 119

Multiple Candlestick Patterns 156

CHAPTER 5 Continuation Patterns 171

Introduction 171

Double Candlestick Patterns 172

Multiple Candlestick Patterns 185

Windows (Gaps) 192

CHAPTER 6 Summarizing Part I 209

Can One Trade the Market and Profi t

Just by Applying Candlestick Chart

Analysis? 210

Candlestick Chart Analysis Is Best

Used in Conjunction with Technical

Indicators 210

Conclusion 211

PART II ADVANCED CANDLESTICK TECHNIQUES

CHAPTER 7 Filtering with Western Indicators 215

Using Filtering or the Rule of Multiple

Techniques 216

Scenario 1: In the Case of a Bull Market

or Bullish Trend 216

Scenario 2: In the Case of a Bear Market

or Bearish Trend 216

Scenario 3: In the Case of Overbought

or Oversold Situations 216

Filtering with Moving Averages 217

Filtering with MACD (Moving Average

Convergence Divergence) 218

Filtering with Relative Strength Index 221

Filtering with Stochastic 224

Filtering with Momentum 229

Filtering with Williams’ Percentage

Retracement 229

Filtering with Directional Movement

Index 232

Filtering with Commodity

Channel Index 235

Filtering with Volume 238

Filtering with Bollinger Bands 238

Filtering with Elliott Wave Theory 240