Japanese candles. Method for analyzing stocks and futures. Gregory Morris
For many years, Japanese candlestick charting has been a leading method of analyzing stock and forex markets.
Numerous candlestick patterns exist that allow one to accurately predict a change in the prevailing trend or, conversely, confirm its strength.
The best way to understand how this method works is to read Gregory Morris's book, "Japanese Candlestick Charting: A Time-Tested Method for Analyzing Stocks and Futures."
In it, the author focuses on the most effective patterns and, most importantly, explains how these patterns can be used in practice.
Practical application is the primary goal of the book; in it, you'll find not only a description of strategies but also testing on specific stocks and futures .
1. Basic principles – as the title suggests, this chapter describes the basic principles on which candlestick analysis is based.
2. Candlestick lines – classification of individual candles by shape and size, as indicated by the candle's appearance.
3. Reversal patterns are combinations that warn the trader about a high probability of a change in the existing trend.
4. Continuation patterns – which candlestick patterns can confirm that the existing trend is only getting stronger.
5. Sokata Methods and Candlestick Formations – Examples strategies based on the use of Japanese candlesticks.
6. The philosophy behind candlestick pattern indication – or, in simple terms, what is the essence of the method under consideration.
7. Reliability of pattern recognition – how effective is candlestick analysis if you analyze the statistics of transactions based on it.
8. Filtering candlesticks – how to recognize false signals, using indicators as assistants.
9. Derivative graphical methods – what are CandlePower charts and how to use them to control volumes.
The book left quite a good impression and can definitely be recommended to anyone who enjoys using technical analysis based on Japanese candlesticks in their trading.
You can download the book from one of the online stores
The section of the website dedicated to Japanese candlesticks is https://time-forex.com/ys
