Candlestick Charting Explained Workbook: Step-by-Step Exercises and Tests to Help You Master Candlestick Charting: Step-By-Step Exercises And Tests To Help You Master Candlestick Charting - Softcover

MORRIS, Gregory L.

Softcover

ISBN 10: 0071742212 ISBN 13: 9780071742214

Verlag: McGraw Hill, 2011

Inhaltsangabe

A practical, hands-on guide to building your mastery of candlestick charting and analysis

Candlestick charting has become one of today's most popular technical analysis tools for both individual and professional investors. And it's much easier than you probably think. In fact, creating a candlestick chart demands no more information than traditional charting requires. With candle pattern analysis, the payoff is a deeper look into the minds of investors and a clearer view of supply and demand dynamics.

In this companion volume to his bestselling Candlestick Charting Explained, Gregory L. Morris delivers hands-on knowledge you need to make candlestick charting and analysis a key element of your portfolio-building strategy. With this book you will be able to:

• Identify candle patterns and quickly see what traders and investors are thinking
• Use reversal patterns to enter or reverse your positions
• Identify continuation patterns to establish additional positions
• Utilize charting software to recognize patterns automatically

Packed with study questions, data tables, diagnostic tools, terminology, sample charts, and market analyses, Candlestick Charting Explained Workbook helps you speed up the learning process and ramp up the profits.

Über diesen Titel

Über die Autorin bzw. den Autor

Gregory L. Morris is Senior Vice President, Chief Technical Analyst, and Chairman of the Investment Committee for Stadion Money Management, LLC. Widely recognized as an expert on candlesticks, he is often interviewed on national media and frequently speaks at financial conferences. Morris is the author of the bestselling Candlestick Charting Explained.

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CANDLESTICK CHARTING EXPLAINED WORKBOOK

Step-by-Step Exercises and Tests to Help You Master Candlestick Charting

By GREGORY L. MORRIS

The McGraw-Hill Companies, Inc.

Copyright © 2012 The McGraw-Hill Companies, Inc.
All rights reserved.

ISBN: 978-0-07-174221-4

Contents

Preface
Acknowledgments
1 Enlistment: Getting Ready for Duty
2 The Foundation: Preparing for Battle
3 Reversal Patterns: Repelling the Advance
4 Continuation Patterns: The Next Attack Wave
5 Intelligence Briefing: Pattern Identification and Filtering
6 Honorable Discharge: Putting It All Together
Appendix A: Other Japanese Charting Methods
Appendix B: Academic Papers on Candlesticks
Sources
Answer Key
Index

Excerpt

CHAPTER 1

ENLISTMENT: GETTING READY FOR DUTY

By purchasing this workbook, you have voluntarily enlisted to participate indoing battle with the markets. The markets are living, morphing entities thatfeed off of human emotion and trader losses. It is my intention to provide youwith the weapons necessary to trade what you see, to help you harness the powerof candlestick analysis, and to avoid unnecessary losses. We will start with thebasics of candlestick lines and patterns and then add weapons to our arsenal aswe progress. First, however, let me step you through my journey that has broughtus together at this point in time.

WHY BOOT CAMP?

In 1971, after graduating from the University of Texas with a bachelor ofscience degree in aerospace engineering, I was faced with a country inrecession, and the marketplace for new engineers was scarce, so I joined theUnited States Navy to become a fighter pilot. Of course, that meant that I hadto become an officer, and that, in turn, meant that I had to attend Officer'sCandidate School in Pensacola, Florida. No problem, right?

In October, 1971, I drove from Dallas, Texas, in my 1962 nonair-conditioned,faded-blue, four-door, standard transmission, six-cylinder Chevrolet Bel Air.This fine automobile had been with me since I was a junior in high school andhad close to 175,000 miles. In the trunk, I had a box of my aerospaceengineering books because I knew the Navy would be impressed and probably wantme to teach others about aerodynamics, heat transfer, and boundary-layer theory.I started to include my golf clubs but later decided that I wouldn't have thatmuch spare time between learning to be an officer, teaching aerodynamics, andengaging in all the social aspects of being a Navy pilot. Additionally, I hadbeen a private pilot since 1967 and assumed that I knew all there was to knowabout flying airplanes. Wow, was I in for a shock!

After checking into a World War II barracks (I knew this was justtemporary), I was told that I did not need anything from my car and would needonly the clothes on my back. I was excited as I thought that I'd be issued myjet flight equipment and some officer uniforms. Then I was told to get a goodnight's rest and expect to get up fairly early. When I dropped off to sleep thatnight (the barracks was not air-conditioned), it was the last moment of thatpart of my life.

At 0500 hours (5 a.m., which later became 2 bells), I was startled awake with ahorribly loud banging sound and someone yelling at me. The banging sound wasmade by a metal trash can being kicked down the hallway (which later becameknown as the passageway). The yelling came from a lean, muscular guy in a Marinedrill instructor uniform, which was complete with a Smokey the Bear hat.Clearly, he was not aware of why I was there and had me confused with a felon,escaped convict, or something.

This was the beginning of a four-month period of my life that I honestly believeI can recall every single minute of because it was so dynamic, frightening,tiring, scary, disconcerting, exhausting—need I go on? If you have neverbeen on the other side of a United States Marine drill instructor, you havemissed one of life's remarkable events. His goal over the next four months wassimple: break me down to almost nothing, and then build me up the way the Navywanted me to be—an officer first, a pilot second. He did it.

I could write volumes on just those four months, but this isn't the place. Hencecame the idea of calling this companion book to my Candlestick ChartingExplained a "boot camp." It is designed to clarify, simplify, and quiz youon the details of Japanese candlestick analysis.

INTRODUCTION

I attended a Market Technician Association seminar in Phoenix, Arizona, in 1988.There was a large contingent of Japanese traders present, and they presentedtheir charting techniques. It was the first time that I had ever heard of HiAshi, which is what the Japanese call their candlestick chart. I was workingwith N-Squared Computing then, and my colleagues and I decided to create acharting product using Japanese candle patterns with automatic recognitioncapability. I traveled to Japan and stayed with Takehiro Hikita, who was anactive red bean and rice trader in Yokohama. I had known Hikita for yearsbecause he was a devoted customer of N-Squared Computing. He was intent onteaching me the art of candlestick analysis, as well as helping me to translatemany of the books that are listed at the end of this book (see Sources).

There are many books out now on candle patterns, and most software programs havecandlestick charting capability. However, very few have the correct (originalJapanese) methodology. This book discusses only the candle patterns that camefrom original Japanese literature, with two exceptions: The Three Outside andThree Inside patterns were created when I was at N-Squared Computing to enhancethe Engulfing and Harami patterns. They do this quite well, but please realizethat they are not real Japanese candle patterns.

Note: I find it amusing that in new books on candlesticks, the Three Outside andThree Inside patterns generally are included as if they are actual Japanesecandle patterns. I think only Steve Nison and I did any original research; therest obtained their knowledge from us.

For additional study, I humbly recommend that you refer to the third edition ofmy book, Candlestick Charting Explained, published by McGraw-Hill. Icover all the patterns included in this book, the single-day patterns, and manyothers that were created to fill holes in the Japanese literature. This workbookclosely follows the details laid out in that book, which was first published in1992 and in its third edition includes a vast amount of statistics.

GENERAL COMMENTS AND OPINIONS

The following are "need to know" information pieces that I have put together inthe last 20 years after giving numerous lectures and presentations oncandlestick analysis. If you think that I have become opinionated over thistime, you are correct. However, I always keep in mind that when dealing with anart form such as this, one should never speak in absolutes. Even though thefollowing seems to be said absolutely, I am only expressing my opinion.

Why Are Single-Day Candle Patterns Not Recommended for Trading?

Every day the market sends a message. Here is what I say about single-daycandlesticks: They are not candle patterns that allow you to see the evolutionof trader psychology...

Details zur Ausgabe

• Verlag: McGraw Hill
• Erscheinungsdatum: 2011
• Sprache: Englisch
• ISBN 10: 0071742212
• ISBN 13: 9780071742214
• Einband: Taschenbuch
• Anzahl der Seiten: 176
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: gpsr@libri.de; gpsr@libri.de; ; Friedensallee 273; Hamburg; 22763; Deutschland