Index of Reversal Patterns ix
Index of Continuation Patterns xi
Preface xiii
Acknowledgments xxi
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 Profit 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
Chapter 8 P.I. System Trader 247
The P.I. System Trader Mimics Candlesticks 248
Trading Rules for P.I. System Trader 250
Advantages of P.I. System Trader 250
Chapter 9 Sakata's Five Methods 253
Sakata's Constitution and Sakata's Five Methods 253
Sakata's Constitution (Soba Sani No Den) 254
The Japanese Method of Three 254
Conclusion 267
Chapter 10 Computerized Candlestick Forecasting 273
The Era of Computerized Candlestick Scanning 274
Features of the Nison Candle Scanner 275
Nison Candle Highlighter on MetaTrader 4 Platform 280
Chapter 11 Conclusion: Facts about Candlesticks 285
About the Author 287
Reading List 289
Index 291
