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japanese candlestick charting

Steve Nison brought candlestick patterns to the Western world in his popular 1991 book, “Japanese Candlestick Charting Techniques.

Trading with Multiple Techniques: Candlesticks & Trend lines

In our last post we concluded our basic overview of Japanese Candlestick Charting with an explanation of the doji. Now let`s try to combine the Japanese approach with Western Technical Analysis methods. Support and Resistance Lines with Candlesticks One method of determining a trend is by using the most basic tool, the trendline. The first […]

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Continuation Signals & Variants in Japanese Candlestick Charts

Windows are the Japanese trading names for price gaps In Japanese candlestick charting a gap is typically referred to as a window. A window is an opening between the prior and the current session’s prices. The example below shows an open window formed in an uptrend. There is a gap between the prior upper shadow […]

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Japanese Candlestick Charting – Stars as Reversal Patterns

Stars form another group of significant reversal patterns A star is a small real body that gaps away from the preceding large real body. It is still considered a star as long as the star‘s real body does not overlap the prior real body. The color of the star is unimportant. They can occur at […]

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Japanese Candlestick Charting: Major Reversal Patterns

Dark-cloud cover as a top reversal Last time we described major reversal patterns like hammer, hanging man, and engulfing pattern. In this post, we will present some more patterns which are also considered to be important reversal signals. This is another 2 candlestick pattern which forms a top reversal after an uptrend. The first day […]

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