Learn More about Candlestick Trading Hi. Does anyone know if there's any good resources/websites/books/materials on candlestick, candlestick pattern or candlestick trading? I don't need the basic ones. Rather I need materials of more advanced level, or focusing on practical uses. Thank you.
I like thsi site stockcharts.com They ahve a pretty good free charting school, then for a fee you can get more. Also, Steve Nison wrote a bunch of good books. You can go on amazon.com and take a look inside the books, as well.
I recommend you find a site or resource that deals with commentary/analysis of candlestick patterns occurring each trading day with chart examples of each trading day that deals with whatever it is your trading so that it can be of practical use to you. Will be tough to recommend anything since you have not stated what your trade, your trading style, if your a price action only trader or a trader using specific indicators et cetera. Also, you may want to look for active trader blogs that deals specifically with Japanese Candlestick discussions/analysis and trades. I don't know of any candlestick analysis trader blogs because most useful blogs aren't searchable via a search engine especially if they aren't a Google Blog and are just known via word of mouth. Simply, the advance practical stuff is going to found at some website that gives daily commentary/analysis about Japanese Candlesticks. Last of all, the only site of such that I had enjoyed was a trader of the Emini Futures and Forex Currencies but that site (its was like a blog) is no longer in existence as of 2001 because the trader had died and it was not in English. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
Japanese Candlestick Charting - Second Edition by Steve Nison its expensive, about 100.00, but its very detailed. - nathan
Hi Nathan, I consider almost all the candlestick books including Nison to either be basic or just generic information. However, I'm assuming when WmWaster used the words focusing on practical uses... It can only be of practical use if the information specifically deals with his trading instruments and his trading style. Everything else outside such may not be of value to him. I'm sure there must be a blog or like out there somewhere that has practical information that would be much more useful than books especially since he stated he's looking for something advance. Example, here's a blog that's not about Japanese Candlesticks but has a few good basic discussions/analysis about candlesticks... http://tradermike.net/2006/03/candlestick_qa Yet, nothing practical nor useful for me personally. For something to be practical and useful for me I would like to see commentary/analysis that involves the following: * Japanese Candlesticks * Economic Reports Analysis * Key World Events that had impact on the markets that particular trading day * In depth discussion about the price action itself that lead to the formation of the candlestick pattern * European and Asia Market Analysis Like I said before, I only found one such source...its must have been time consuming because he posted a ton of useful information about each trading day and unfortunately the trader died later. Other than that...all the other sources I've found point to either a book or just have basic (generic) discussions. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
IMO candlesticks will not make you a good trader. I know because candlesticks where all that I studied and thought they would make me a good trader. I ended up using bar-charts anyways and realized all that BS about Candlesticks can easily be interpreted in other ways. Chart patterns is probably more worth studying, like triangles and stuff. Support and resistance is also great to study. Just figured I'd throw in my 2 cents
Sorry, but bar charts suck! Other than an Island Bar Formation or Inside Day, what do you got, nothing! I trade well off of candlesticks, I can't understand how you like bar charts seriousy? Please educate me, what formations are there, than mentioned above? Here is a website with some good general info http://www.candlestickforum.com/
Once you do learn how to use candlesticks... You'll realize its just chart patterns, s/r zones, some candlestick patterns are triangles and price reaction to key market events. Not difficult unless you made the mistake of trying to understand candlestick patterns before understanding the market (most likely the case). Therefore, I don't recommend using candlesticks all by itself. Those that do will have difficulty and find no value. Then again...we can say that about anything else we get tunnel vision about while ignoring what's really moving the markets. Hey JM...remember your other thread about bar charts, candlesticks and tape reading??? http://www.elitetrader.com/vb/showthread.php?s=&threadid=67634 Simply, don't get confused about using candlestick charting and candlestick pattern analysis mixed up. They are two completely different things as explained in the above threads. * Candlestick pattern recognition is dependent upon using candlestick charts. * Candlestick charting is independent from candlestick pattern recognition. Therefore, I know lots of traders that don't use candlestick patterns but use candlestick charts for the visual information or because it just looks nicer. However, once you get into the meat of supply/demand... That's where I see the advantage of using candlestick charts versus bar charts regardless if someone is using Japanese Candlestick patterns or not. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
I was referring to the whole study of candlesticks. I also don't think candlesticks give me an advantage in my intra-day trading. I stress on the tops and bottoms of bars, because I play breakouts and candlesticks don't show that as well as I'd like where one tick can make a difference. But that is a whole other argument. Moral of the story, don't spend too much time studying candlesticks thinking they will make you a great trader. I did, and I found it useless, study it, understand it, and then move on to more important things. I did the complete opposite and thought candlesticks could improve my trading and would make me a great trader if I studied them. That was my mistake, so don't make the same mistake, of course I was new to the markets and generally asked nothing but stupid questions, so maybe that had a good amount to deal with it. EDIT: Although I do use candlesticks on the daily timeframe on all my charts, and when trading * or at least trying to trade* Forex, because my style of trading isn't dependent on trading only breakouts and stuff. Just wanted to add that as well.