Japanese Candlestick Charting Techniques : A Contemporary Guide to the Ancient Investment Techniques of the Far East

Preface v Acknowledgments vii About the Author xi Introduction 1(14) What's New in This Book 2(1) Why Have Candle Charting Techniques Captured the Attention of Traders and Investors Around the World? 2(2) Who Is This Book For? 4(1) Some Background 5(2) What Is in This Book? 7(1) Some Cautions 8(3) The Importance of Technical Analysis 11(4) A Historical Background 15(6) PART 1: THE BASICS 21(160) Constructing the Candlestick Lines 23(8) Drawing the Candle Lines 25(6) Reversal Patterns 31(30) Umbrella Lines 32(10) Hammer 34(4) Hanging Man 38(4) The Engulfing Pattern 42(7) Dark-Cloud Cover 49(6) Piercing Pattern 55(6) Stars 61(20) The Morning Star 62(4) The Evening Star 66(4) The Morning and Evening Doji Stars 70(4) The Shooting Star and the Inverted Hammer 74(7) The Shooting Star 75(2) The Inverted Hammer 77(4) More Reversal Patters 81(44) The Harami Pattern 82(5) Harami Cross 83(4) Tweezers Tops and Bottoms 87(6) Belt-Hold Lines 93(2) Upside-Gap Two Crows 95(2) Three Black Crows 97(2) Three Advancing White Soldiers 99(4) Three Mountains and Three Rivers 103(6) Counterattack Lines 109(5) Dumpling Tops and Frypan Bottoms 114(5) Tower Tops and Bottoms 119(6) Continuation Patterns 125(30) Windows 126(8) Tasuki 134(21) High-Price and Low-Price Gapping Plays 136(3) Gapping Side-by-Side White Lines 139(3) Rising and Falling Three Methods 142(8) Separating Lines 150(5) The Magic Doji 155(18) The Northern Doji (Doji during Rallies) 158(3) The Long-Legged Doji (Rickshaw Man), the Gravestone Doji, and the Dragonfly Doji 161(9) The Tri-Star 170(3) Putting It all Together 173(8) PART 2: CONVERGENCE 181(86) A Cluster of Candles 187(6) Candles With Trend Lines 193(20) Springs and Upthrusts 199(6) The Change of Polarity Principle 205(8) Candles with Retracement Levels 213(4) Candles with Moving Averages 217(8) The Simple Moving Average 217(2) The Weighted Moving Average 219(1) The Exponential Moving Average 219(1) Using Moving Averages 219(6) Candles with Oscillators 225(16) The Relative Strength Index 226(3) Computing the RSI 226(1) Using the RSI 227(2) Moving Average Oscillator 229(4) Computing the Moving Average Oscillator 229(1) Using the Moving Average Oscillator 229(4) Stochastics 233(4) Computing Stochastics 234(1) Using Stochastics 234(3) Moving Average Convergence-Divergence 237(1) Constructing the MACD 237(1) Using the MACD 237(4) Candles with Volume 241(8) Measured Moves 249(14) Breakouts from Boxes 250(5) Swing Targets, Flags, and Pennants 255(8) The Best of the East and West: The Power of Convergence 263(4) Conclusion 267(2) Glossary A Candlestick Terms and Visual Dictionary 269(10) Glossary B Western Technical Terms 279(6) Bibliography 285(4) Index 289