Monday, June 25, 2007

Japanese Candlestick Charting Techniques

This was one of the first books I read on technical analysis, and I am certainly glad that I discovered it, since I think that it gave me a perspective on the markets that I would otherwise not have. I would say that this is the definitive source on candles, and belongs in every traders library.

The author, Steve Nison, starts off by introducing where and when candles developed by going through some interesting Japanese history. From there, he carefully goes through how candles are constructed, so that you have a firm foundation before moving on to the actual patterns.

When it comes to explaining patterns, this is where Mr. Nison's book really shines. Not only does he explain every major pattern known, but he gives numerous real life examples to drive the point home. At 320 pages, he gives the reader plenty of material, and leaves no stone unturned. Furthermore, he explains the reasoning or rationale behind the formations, and why they are bullish or bearish.

It is clear that Mr. Nison spent a tremendous amount of time researching his information from actual Japanese sources before writing his book. In this book, Steve Nison took precious knowledge that was once only available to those who could read Japanese, and made it available to you and me. For this reason, I, again, highly recommend this book.

Overall Rating: 10/10

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