21 candlesticks every trader should know PDF free download- In this book I have selected 21 candles that I believe every trader should know by name. These are the candles that in my experience occur most frequently and have the greatest relevance for making trading decisions.
Author: Melvin Pasternak
Download link: At the end of the post
Candlesticks are one of the most powerful technical analysis tools in the trader’s toolkit. While candlestick charts dates back to Japan in the 1700’s, this form of charting did not become popular in the western world until the early 1990’s. Since that time, they have become the default mode of charting for serious technical
analysts replacing the open-high-low-close bar chart.
There has been a great deal of cogent information published on candlestick charting both in book form and on the worldwide web. Many of the works, however, are encyclopedic in nature. There are perhaps 100 individual candlesticks and candle patterns that are presented, a daunting amount of information for a trader to
In 21 candlesticks every trader should know PDF free download I have selected 21 candles that I believe every trader should know by name. These are the candles that in my experience occur most frequently and have the greatest relevance for making trading decisions. Just as knowing the name of a person helps you immediately recognize them on a crowded street, so being able to name the candlestick allows you to pick it out of a chart pattern. Being able to name it allows you to appreciate its technical implications and increases the accuracy of your predictions.
In my trading, I try to integrate candlestick analysis, moving averages, Bollinger bands, price patterns (such as triangles) and indicators such as stochastics or CCI to reach decisions. I find the more information which is integrated, the more likely the decision is to be correct. In this book, I have chosen to combine moving averages, Bollinger bands and two indicators, stochastics, and CCI on various charts. As we discuss individual candlesticks
or candle patterns, I integrate these tools into the discussion.
Hopefully, you will not only learn how to recognize candles from this book, but also appreciate how you can combine them with the traditional tools of technical analysis.
In this book my focus is on Minor trend reversals, the kind of reversal of most interest to a trader. The Minor trend typically lasts 5 to 15 days although on occasion, I have seen it stretch out to about 30 trading days. These same candle principles work equally as well, however, on 5 minute or weekly charts. It is simply a matter of adapting this information to the time frame you are trading in.
Contents- 21 candlesticks every trader should know PDF free download
Candles Anticipate, Indicators Follow, Trendlines Confirm
How To Read A Candlestick Chart
Bar vs. Candlestick Charts
Optimism and Pessimism as Shown by Candles
Advantages of Candle vs. Bar Charts
Candles Anticipate Short Term Reversals
Why Candlesticks Work
“The Rule of Two”
Candles in Action: Dow Jones Analysis
II 21 CANDLES EVERY TRADER SHOULD KNOW BY NAME
Candles 1-4: The Four Dojis Show Stocks That
Candles 5-6: Hammer and Hangman
Candlesticks Signal Key Reversals
Candles 7-8: Bullish and Bearish Engulfing
Candles Spot Key Trend Changes Before They
Candle 9: Dark Cloud Cover Warns of
Impending Market Tops
Candle 10: The Piercing Candle Is a Potent
Candles 11-12: The Three Candle Evening and
Morning Star Patterns Signal Major Reversals
Candle 13: The Shooting Star Can Wound
Candle 14: The Inverted Hammer Indicates The
Shorts May Be Ready To Cover
Candle 15: The Harami is “Pregnant” With
Candle 16: The “Full” Marubozu Is a Candle
Candles 17-18 High Wave and Spinning Top
Express Doubt and Confusion
Candle 19: The Ominous Call of Three Black
III Gaps From a Japanese Candlestick ViewpointThe Four Types of Gaps: Common, Continuation, Breakaway and Exhaustion
Candlestick Theory on Gaps
Synthesis of Western Wisdom and Eastern
IV A Concluding Challenge
About the Author
Dr. Melvin Pasternak has studied and traded the stock market for more than 40 years, having made his first trade in 1961. For more than a decade he taught classes in technical analysis for TD Waterhouse and also instructed stock market classes at the college level for many years.
Melvin holds both Ph.D. and M.B.A. degrees and writes a trading oriented newsletter called the Swing Trader at www.streetauthority.com.
Dr. Pasternak is a regular technical analysis commentator for CBC radio, Canada’s national radio station. His stockpicking methods have been profiled in several newspaper articles.
Dr. Pasternak actively trades his own account where the methods described in this book form a key part of his decision making. In his best year, he multiplied his account several hundred percent and completed more than 80% of his trades profitably..
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