Power Of Japanese Candlestick Charts

For over 300 years, Japanese candlestick charts have been accurately predicting market movements and helping traders to profit from optimally timed market entries and exits. With The Power of Japanese Candlestick Charts, author Fred Tam explains how to integrate the visual, predictive power of candlestick charts with proven technical analysis to help traders, analysts, and investors maximize returns in any market.

The Japanese candlestick methodology is a very powerful short-term trading technique, and part of the reason is because it routinely triggers accurate buy or sell signals at least two periods, and sometimes up to ten periods, earlier than traditional Western indicators. This is because candlestick signals are based on a close analysis of the product price as related to an underlying knowledge of how greed, fear, and other factors drive investors' behavior in certain market conditions. The same technique can be equally successful when applied to long-term trading strategies, with only minor adjustments.

Traders will be convinced from the hundreds of charts illustrated in this book that Japanese candlestick signals lead Western technical indicators in timing market entry and exit. With examples taken directly from charts of leading international companies, currencies, and commodities, Fred Tam explains in detail how to create, read, and profit from candlestick charts. Candlestick charts provide numerous advantages over other charting techniques, including their unlimited versatility across time dimensions and multiple market applications, and readers will gain an understanding of how to leverage those advantages in stocks, futures, and currency trading.

The Power of Japanese Candlestick Charts delves into the effectiveness of the methodology as a stand-alone technique, but Fred Tam contends that candlesticks are most profitable when integrated with trend analysis and technical indicators such as Moving Average, RSI, Momentum, MACD, Stochastic, DMI, CCI, Percent R, Bollinger Bands, and Elliott Wave Theory, among others. It is this holistic and integrated investment approach that Mr. Tam is uniquely positioned to provide to readers, and it is why this book is an invaluable resource for profit-driven traders, technical analysts, and investors.