Japanese Candlestick Charting Techniques

Nison brought Japanese candlestick charting to Western traders, and this book remains the most comprehensive reference on the subject. The pattern descriptions are thorough and well-illustrated. However, the book is overpriced for content that's now freely available online, many of the patterns have limited statistical validity in modern markets, and Nison occasionally oversells the predictive power of candlestick formations. Useful as a reference but dangerous if taken as a standalone trading methodology. Better to learn the major patterns (engulfing, doji, hammer, morning/evening star) and combine them with other analysis rather than treating candlesticks as a complete system.

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For the broader TA reference that puts candlesticks in context, see Technical Analysis of the Financial Markets. For a practical system using chart patterns, see How to Make Money in Stocks. Browse our Technical Analysis category.