Japanese Candle Charting is Anything But Dull
Imagine poor Bob Cratchit, bending over his desk with his ever-present green eye-shade, laboring over sheets and sheets of financial charts in the hope of making sense of them.
Now imagine a new, brighter Candle arriving on the scene, illuminating the room and Bob's sensitivity to the information which the charts contain.
That's the way it is with Japanese Candle Charting.
The Candles take bar charts by the lapels, shake them up a bit, and convert them to bright lights of valuable and actionable information.
Imagine it this way: You know the area on that part of a bar chart which lies between the open and the close.
Widen out that area into an empty cylinder.
If the close is higher than the open, leave the cylinder empty (or "white").
If the close is lower than the open, then color the cylinder black.
We will call the cylinder the "real body" of price action that day (or week, or month, or whatever time span you choose).
What does that accomplish? Well, it makes the mindset of the traders that day easier to see.
The system really comes into its own when price data are being shown in real time, so that during actual trading the viewer can watch the flow of the moving close and can come to some conclusions about the changing mood or mind-set of the traders as the minutes roll by.
We are talking here about Pattern Recognition.
The day trader can benefit too, because he can see reversal patterns form and can act on them immediately.
The "Hammer" on a one-minute chart or on a ten-minute chart acts exactly the same as a Hammer on a Yearly chart.
The principle is identical across all time frames, in all financial markets.
The trader who would use Japanese Candle Charting should first read and understand the basic literature on the subject.
Then he should take the time and trouble to memorize the 15 or so most common Candlestick Reversal Patterns, which should take no more than the time between the end of suppertime and the beginning of bedtime - it's that easy, and the patterns are so intuitive.
And it's fun, besides.
Now imagine a new, brighter Candle arriving on the scene, illuminating the room and Bob's sensitivity to the information which the charts contain.
That's the way it is with Japanese Candle Charting.
The Candles take bar charts by the lapels, shake them up a bit, and convert them to bright lights of valuable and actionable information.
Imagine it this way: You know the area on that part of a bar chart which lies between the open and the close.
Widen out that area into an empty cylinder.
If the close is higher than the open, leave the cylinder empty (or "white").
If the close is lower than the open, then color the cylinder black.
We will call the cylinder the "real body" of price action that day (or week, or month, or whatever time span you choose).
What does that accomplish? Well, it makes the mindset of the traders that day easier to see.
The system really comes into its own when price data are being shown in real time, so that during actual trading the viewer can watch the flow of the moving close and can come to some conclusions about the changing mood or mind-set of the traders as the minutes roll by.
We are talking here about Pattern Recognition.
The day trader can benefit too, because he can see reversal patterns form and can act on them immediately.
The "Hammer" on a one-minute chart or on a ten-minute chart acts exactly the same as a Hammer on a Yearly chart.
The principle is identical across all time frames, in all financial markets.
The trader who would use Japanese Candle Charting should first read and understand the basic literature on the subject.
Then he should take the time and trouble to memorize the 15 or so most common Candlestick Reversal Patterns, which should take no more than the time between the end of suppertime and the beginning of bedtime - it's that easy, and the patterns are so intuitive.
And it's fun, besides.