Profitable Candlestick Trading

Introduction
The book starts off with highlighting the benefits of Candlestick system as well as a brief history of how candlestick was started 400 years back in Japan. It highlights the main differences between candlesticks as well as barcharts.

It’s interesting to see how Stephen actually dish Fundamental trading and highlight the importance of price action of candlestick as a ultimate criteria for optimal trading.

Patterns deciphered and explained
I’ve written a tutorial on Candlesticks Formation for NobsForex, but it is not as comprehensive as the book’s. 14 major reversal signals (Doji, Bullish and Bearish Engulfing, Hammers and more) and 19 secondary reversal signals are explained in detail, touching on each criteria, signal enhancements as well as the pattern psychology of each signal. 12 continuation patterns (On Neck Line, In Neck Line, Thrusting and more) are touched on extensively as well. It goes on to explain the major signals again and how it works hand in hand with each other. This section deserves good attention.

A good reference book that you might want to place on your desk all the time when you have your charts right in front of you.

Investor Physchology
This is actually my favourite part of the book. You know constant reminders are all around for traders on the risk as well as the common sense a trader should have.

This section touches on how candlestick forces the basics back into the thinking process, as well as some interesting reads like avoid taking brokerage firms news and recommendations. Give this section a very good and thorough read, you’ll appreciate this.

Candlestick Trading Rules
This pretty much covers the dos and don’ts of trading with candlesticks (actually it applies to all types of trading). Things like ‘When in Doubt, Get Out’ and ‘If a Trade is Not Working, Move On’ are being covered. Again, all these are reminders on what a good trader should probably develop, if you haven’t already.

Other Miscellaneous Coverage
The others which I find aren’t as important, are things that has to do with Candlesticks combining with other tools that are available. For an example, combining Elliott Wave with Candlesticks (since they aren’t teaching Elliott Wave on the book comprehensively). The book touches the difference on Candlesticks in different markets like stocks, commodities and futures as well.

Conclusion
A book worth getting to learn Candlesticks, it’s a little hefty on the price and a 2nd hand one on Amazon still costs around $46 (including shipping), still it’s worth every penny spent. It stays permanently on my table till I get totally familiar with most of the formations in my head.

Credit to Jude [www.nobsforex.net]