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Technical Analysis For Dummies, 4th Edition
book

Technical Analysis For Dummies, 4th Edition

by Barbara Rockefeller
October 2019
Beginner content levelBeginner
384 pages
10h 46m
English
For Dummies
Content preview from Technical Analysis For Dummies, 4th Edition

Chapter 8

Redrawing the Price Bar: Japanese Candlesticks

IN THIS CHAPTER

Bullet Introducing candlesticks

Bullet Going over a few specific patterns

Bullet Using candlesticks with other market tools

Candlestick charting displays the price bar in a graphically different way from the standard bars described in Chapters 6 and 7. Candlestick charting was developed in Japan at least 250 years ago in the 18th century, where traders applied it to prices in the rice market.

A trader named Steve Nison brought candlesticks to the attention of western traders in 1990. Candlestick patterns became instantly popular because they embody the principle of imputing trader sentiment to the bars, as in “shaven top,” where the close is at the high. As I say in Chapter 6, the close at the high means strong bullish sentiment. Today every software program offers to display bars in the conventional way or in candlestick format. Trading guides abound on how to use candlesticks. Steve Bigalow has several books on candlestick trading (and software add-ons), including Profitable Candlestick Trading and High Profit Candlestick Patterns (both published by John Wiley & Sons, Inc.).

In this chapter, I break down the components of a ...

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Publisher Resources

ISBN: 9781119596554Purchase book