Profitable Candlestick Trading

In accessible and easy-to-understand language, this book bridges the gap between past wisdom and contemporary practice to give any level of investor a complete understanding of this proven, profitable, and time-tested investing technique.

Tested, proven, and successful, Japanese Candlestick charting and analysis is one of the most profitable–yet underutilized–ways to trade the market. In Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits, Candlestick trading expert Stephen Bigalow shows you how to recognize and harness the power of Candlestick signals as well as implement them into a profitable trading system. Signals created by this unique technical analysis method–represented in the form of graphic "Candlestick" formations–identify the immediate direction and effects of investor sentiment through price movements, and allow you to trade profitably by realizing trend reversals before other investors do. This step-by-step guide makes learning the Candlestick method a fast and easy process by introducing specific patterns as well as the "psychology" behind each pattern that develops in a chart. Incorporating the common sense and logical disciplines that most investors are aware of, but ignore, Profitable Candlestick Trading opens with a detailed look at the most valuable aspect of technical analysis–reversal patterns–while explaining major reversal signals such as the Doji, the Hammer, the Hanging Man, Engulfing Patterns, and Dark Cloud Cover. Although most Candlestick signals are reversal patterns, this comprehensive guide also addresses continuation patterns and explores how they can help with the decision-making process during certain trading periods. Mastering the Candlestick method will revolutionize your investment-thinking process. Profitable Candlestick Trading dispels the notion that Candlestick techniques are too labor-intensive. Using software search programs allowing you to visually evaluate hundreds of charts in a matter of minutes, you'll quickly learn how to search and view Candlestick formations. Moving from theory to practice, this guide shows you how to find trading situations that have the maximum potential for profitability; the highest probability of succeeding; and the least amount of downside risk. By exposing you to the profitable combinations of signals, price moves, and stochastic positions apparent in a number of common patterns–such as the Jay Hook pattern–this book will speed up your recognition of the process and increase your profits with each trade whether for a one minute, one day, or one year hold. With tools in hand, you'll begin to learn about the built-in advantages of the Japanese Candlestick methodology. Bigalow shows you how to coordinate Candlestick analysis with simple but disciplined trading rules to form an extremely profitable investment program that utilizes these advantages to their fullest. Whether you're dealing in stocks, commodities, or futures, Profitable Candlestick Trading gives you the advice, knowledge, and techniques necessary to enter the markets with confidence and exit with profits. In providing an in-depth understanding of how Candlestick charting works–across a variety of investment vehicles–this comprehensive guide allows you to control your own investment future and produce profitable results that go far beyond other investment programs. Your investment abilities will be dramatically improved forever.

Contents

Ch. 1 Introduction 1
Ch. 2 The Reversal Patterns 19
Ch. 3 Continuation Patterns 103
Ch. 4 Major Signals Explained 129
Ch. 5 Finding and Learning the Signals Made Easy 153
Ch. 6 Common Patterns 161
Ch. 7 Revolutionizing Investor Psychology 185
Ch. 8 Analyzing Profitable Trades 203
Ch. 9 Maximizing Profits 221
Ch. 10 Trading Programs 239
Ch. 11 Using Candlesticks to Improve Elliot Wave Analysis 259
Ch. 12 Option Trading Refined 273
Ch. 13 Candlesticks with Commodities and Futures 283
Ch. 14 The UltimateInvestment Program 289
Ch. 15 Candlestick Trading Rules 301
Ch. 16 Conclusion 307

Glossary 311
Index 317