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Candlestick
Description
The
Japanese developed a method of technical analysis
in the 1600s to analyze the price of rice
contracts. This
technique is called Candlestick charting.
Candlestick
charts display the open, high, low, and closing
prices in a format similar to a modern-day
bar-chart. Articles
written by Steven Nison that explain Candlestick
charting appeared in the December, 1989 and April,
1990 issues of Futures Magazine.
The definitive book on the subject is Japanese
Candlestick Charting Techniques also by Steve
Nison).
You
may find the expert named "Equis -
Candlesticks" helpful in interpreting
Candlestick patterns.
Some
investors are attracted to Candlestick charts by
their mystique--maybe they are the "long
forgotten Asian secret" to investment
analysis. Other
investors may be turned-off by their mystique.
Regardless of your feelings about the
mystique of Candlestick charting, we strongly
encourage you to explore their use.
Candlestick charts dramatically illustrate
supply/demand concepts defined by classical
technical analysis theories.
Interpretation
The interpretation of candlestick charts is based
primarily on patterns. The most popular patterns are
explained here. A
good way to learn about candlestick patterns is to
attach the expert named "Equis -
Candlesticks" to a chart. |
