Japanese Candlestick Charting Techniques, Second Edition

298 Pages·2016·20.62 MB·English

by  Steve Nison

A CONTEMPORARY GUIDE TO THE
~ ANCIENT INVESTMENT
TECHNIQUES OF THE FAR EAST
SECON D EDITION
STEVE NISON
II

NEWYORK INSTITUTE OF FINANCE
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Copyright©2001bySteveNison
Allrights reserved. Nopartofthisbookmaybereproduced inany formorby any means,
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LibraryofCongressCataloging-in-PublicationData
Nisan,Steve.
Japanesecandlestickchartingtechniques : acontemporaryguidetotheancient
investmenttechniquesoftheFarEast / SteveNison.——2nded.
p. cm.
Includesbibliographicalreferencesandindex.
ISBN0-7352—0181-1 (cloth)
1.Stocks—Charts,diagrams,etc 2.Investmentanalysis. I.Title.
HG4638.N572001 _ 2001026704
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PREFACE

能ぁる鷹は爪を隠す
A clever hawk hides it claws.
I t’s hard to believe that Japanese candlestick charts, the
“claws” of Japanese technical analysis, were completely
unknown to the Western world before I revealed them to the
Western hemisphere in 1989. Candlestick charts are now so
prevalent that it is hard to imagine that before the first edition
of this book, no one in the West knew about these wonderful
techniques and not one charting service had candlestick charts.
This is amazing to me, considering that candlestick charts are
now available on almost every charting service.
I amproud to saythatIapanese CandlestickCharting Techniques
quicklybecame the foundation ofall candlestick charting work
in the West. The first edition of this book is Why you now have
candlestick charts on the Internet and anywhere else they are
available. Illustrating the universal popularity and effective-
ness of candle charts, the book has been translated into six lan-
guages and has gone through thirteen printings.
Vi Preface
The tools, techniques, and topics offered inthe firsteditionof
this book are ageless and useable in all markets and time
frames. But through cogent logic (and holding my dog
hostage!) the editor ofthis edition convinced me it was time for
a new edition.
Some of the fresh aspects of this book include updated
charts, more equitymarkets, a focus on active trading via intra-
day charts, new refinements and strategies, and fresh combina-
tions of Western technical analysis with candlestick charting
tools.
In a public seminar, I asked the audience to write what they
hoped to get from the seminar. Someone wrote, "To make big
$$$.” While I can’t guarantee ”big $$$” I expect that the tools,
strategies, and techniques in this book will go a long way to
improve your trading and decrease risk exposure.
Thank you for making the first edition ofthis book so popu-
lar. I know you will find this one as valuable, practical, and
entertaining.
I would enjoy hearing your comments, experiences, and
ideas with candle charts. I welcome your e-mail at info@can-
dlechartscom and invite you to Visit our site at www.can-
dlechartscom. While I can’t guarantee a reply, all your e-mails
and letters will be read.
ACKNOWLEDGMENTS

小 さ女瀧勿/丈,忘れず小 さな涸 ち/羹,忘れよ〝
Do notforget little kindnesses and do not remember smallfaults.
want to thank all of you who have helped ignite the flames
of interest in candle charts. The overwhelmingly positive
feedback keeps the lights of the candles growing ever brighter.
To my institutional and public seminar attendees, advisory
clients, and online clients, I want to thank you for your contin—
ued support and kind words.
A Japanese proverb says that, ”One evening’s conversation
with a superior man is better than ten years of study.” It is my
pleasure to acknowledge the superior men and women who
have so generously helped me.
Many of those who deserve recognition for their help are
mentioned inChapter 1. There are others whomI would like to
thank for their help in lighting my path. There were so many
who contributed to this project that if I have forgotten to men-
tion anyone I apologize for this oversight.
Vii
viii Acknowledgments
The underpinnings for all my research on candles are the
translations provided by Richard Solberg. His acquisitions of
the Japanese candle charting books, his ideas, and his work
provided the scaffolding for the rest of my candle endeavors.
The Market Technicians Association (MTA) deserves special
mention. It was at the MTA’s library that I first discovered can-
dle material written in English. This material, albeit scant, was
extremely difficult to obtain, but the marvelously complete
MTAlibrary had it.
Yoji lnata spent many hours answering my more advanced
questions. He was also kind enough to contact his peers in
Japan to get more detailed answers ifnecessary.
The Nippon Technical Analysts Association (NTAA)
deserves utmost praise for their assistance. Mr. Kojiiro
Watanabe helped me to contact NTAA members who have
been especially helpful. They are: Mr. Minoru Eda and Mr.
Yasushi Hayashi Nori Hayashi.
Therearemanycandle charting softwareprograms available.
For this book I used two of what I consider the best: Aspen
Graphics (WWW.Aspenres.com) and CQG (www.cqg.com).
Their products and support are top-notch.
Just as I did in the first edition, I again want to thank ”idea a
day” Bruce Kamich. Bruce is a friend and a fellow technician
with over 25 years’ experience. He continues to provide many
valuable ideas and suggestions.
Mark Tunkel, a friend and a colleague for many years, has
powerful insights into candle charts. His help on this book is
much appreciated.
Susan Barry, the editor for the first edition of this book, had
the foresight to convince her boss that candles would be popu-
lar enough to take a chance on a book. The increasing sales
sinceits initialpublicationin 1991 have confirmedher thinking.
For this edition, Ellen Schneid Coleman and Sybil Grace at
Prentice Hall have taken the coal of this book and made it into
a diamond.
Of course, there is my family. It’s hard to believe that my son
was just born when I wrote the first edition. (He’s now 11.) I
told him that I came close to calling him Candlesticks Nison.
Thatnamewouldbe appropriate. Evan’s averyquicklearner—
especially when it comes to finances—and can’t absorb candle
charting fast enough. I think we will put our family finances in
his hands.
Acknowledgments ix
Rebecca, fouryears oldwhenthe firsteditionwas published,
is a verybright young lady now. She makes meproud tobe her
father. Ifwe put our finances in her hands, we would be home-
less, but would have lots of clothing and make—up.
My wife Bonnie continues to be our cornerstone. Without
her, everything would fall apart and there would be no way
this book could have been done.
AB。UTTHE
AUTHOR
先人の跡をたどる
Ifyou wish to know the road, inquire ofthose who have traveled it.
Steve Nison, CMT, was the very first to reveal the startling
power of candlestick charts to the Western Hemisphere. He
is acknowledged as the leading authority on the subject.
His two books, Iapanese Candlestick Charting Techniques and
Beyond Candlesticks, are international best—sellers and are the
foundation of all candlestick research and analysis.
Steve has trained professionals in almost every major invest~
ment firm in eighteen different countries on how to apply these
methods. He has also taught at the Federal Reserve, The World
Bank, and numerous universities. He is an instructor at the
New York Institute of Finance.
Steve was among the first to receive the Chartered Market
Technician (CMT) designation from the Market Technicians
Association (MTA). He was previously a senior technical ana—
lyst at Merrill Lynch and senior vice president at Daiwa securi—
ties. He holds an MBA. in Finance and Investments.
xi
xii About theAuthor
Steve is president of Candlechartscom, which offers institu-
tional on-site and public seminars, educational products, and
advisory services. To learn all that Candlecharts.com has to
offer, see page 287 or visit their Web site at www.candle
chartscom.