Overall Grade: A-
Price: Approximately $50 New (Paperback at Amazon)
Author: Steve Nison, CMT (Chartered Market Technician)
Additional Works: Beginning to Profit from Candlestick Charts & Beyond Candlesticks
All Hail the King of Candlesticks!
If there was ever an expert in anything, it would be Steve Nison when it comes to Japanese Candlesticks. His “King of Candlesticks” moniker is well-deserved as he was the first man to study and reveal candle charting techniques to the Western Hemisphere. Fittingly, his books are known as the “Bibles” of Japanese Candle Charting.
This type of charting is a “supply and demand” based technique that was invented thousands of years ago by Japanese rice traders. Using candlesticks can be a powerfully effective tool that works in all of today’s seemingly unpredictable markets. Without a doubt, candlestick charts can be a leading indicator of trend shifts by visually displaying overall market psychology, thus providing key insights into future market direction.
The Importance of Technical Analysis
Technical analysis is a method many traders use to predict future market direction by analyzing both current and past price action. The idea is that history tends to repeat itself, meaning certain chart patterns produce the same end result time after time, making the forecast of future stock direction more predictable than usual. For this reason, candlesticks can be used to our advantage. The fact that their application in any market is simple and pattern recognition is easy, makes them the #1 technical analysis tool.
Once a certain technical pattern occurs, such as a double bottom, technical traders may enter or exit a trade based on this price action and chart history. Notice how in the chart above, shares of CDTI seem to be trading in a specific range between the blue and purple trend lines. Technical traders seeking a long position will unquestionably be looking to enter at the blue line (support) and exit at the purple line (resistance).
Candlesticks can be used in conjunction with other technical indicators as well, such as moving averages. The more indicators you can find that confirm your future price action prediction, the better chance you have of a profitable trade.
8 Advantages of The Candlestick Course
(2) Candle charting techniques work in every market: stocks, forex, options, etc.
(3) Ability to test your understanding of the concepts through end-of-chapter quizzes, Q&A’s, and realistic examples
(4) Nison makes a fairly dry subject somewhat interesting with various stories and Japanese proverbs sprinkled in
(5) Easy-to-understand language that appeals to novices
(6) By the end, you will be able recognize various candlestick patterns in real-world trading environments
(7) Knowledge is power when it comes to investing – understanding market psychology using candlesticks gives you an unmistakable edge
(8) Perfect complement to Nison’s other best-selling books and video workshops
Is The Candlestick Course for Everybody?
Every level of investor can benefit from a complete understanding of candles: Novices can enjoy the simple language and hands-on examples in order to learn the basics. Experienced traders can review, test, hone their skills & perfect their technical foundation. This book is more than just a 1-time read. It can be used as a refresher course as well as a reference source many times over – Be sure to take advantage of the Chart Patterns Visual Glossary in the back. Without at least a basic understanding of candle charts, you will be leaving an opportunity to easily better yourself as a trader.
Steve Nison’s Credentials:
- His work has been highlighted in The Wall Street Journal, Barron’s, Worth Magazine, and Institutional Investor
- Numerous appearances on CNBC
- Holds an MBA in Finance & Investments
- Senior Technical Analyst at Merrill Lynch
- Senior Vice President at Daiwa Securities
- One of the first to receive the Chartered Market Technician (CMT) designation from the Market Technicians Association (MTA)
- Founder and President of CandleCharts.com
The Verdict on The Candlestick Course
Candlesticks can tell a story: They can signal trend reversals and price patterns with unprecedented accuracy. These early reversals will provide you with razor sharp entries and exits as you pinpoint, analyze, and interpret critical market opportunities. Learning and understanding candle charts can give you a leg up on traders who solely use traditional Western techniques, such as line charts. With Steve Nison’s help, you can discover the telling world of the Hammer, Doji, Morning Star, and much more. Now is the time to take your trading to the next level. You can finally learn the right times to enter and exit your trades.
Please leave any questions or comments concerning The Candlestick Course below.
Written by Matthew Thomas