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Reaver

What's the best resource for learning about candles?

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I was wondering: What would you consider the best resource for learning more about candles?

 

I trade momentum and would like to learn more about candles to possibly incorporate them into my method.

 

There are a lot of books, sites etc about candles...but I am hoping someone can help separate the wheat from the chaff a little!

 

 

Thanks!

 

Nate

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Is it me, or is it curious that you'd think that since the candlesticks were developed by rice traders in Japan several centuries ago before the West even knew what they were, that perhaps the experts in this matter might be Japanese?

 

It somewhat amuses, yet appalls me that Westerners should come around to another culture, usurp its technology, and then declare themselves as the experts in the "new" technology.

 

So, with candlesticks, is this the case? Love to hear an Eastern perspective - perhaps Soultrader, you might have some insight or opinion on all of this?

 

thxs

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I have wondered that myself- however I think it's a matter of culture barrier or whatever you want to call it. Maybe lack of accessibility is a better term....

 

I wouldn't argue that there are many Japanese traders that eat sleep and breathe candlesticks and could wipe the floor with many outsider analysts...however, the human mind is amazing in its capacity to learn, so if one were to put forth adequate time, effort and research, I don't think it would matter where you're from as far as how skilled you end up being.

 

Nison stated, if I remember correctly, that he had to spend a considerable amount of time learning more about Japanese culture and philosophy in order to grasp the subject matter.

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It somewhat amuses, yet appalls me that Westerners should come around to another culture, usurp its technology, and then declare themselves as the experts in the "new" technology.

 

I dont recall Nison claiming this as a "new" technology and claiming it as his own. He may very well be an expert on the subject, but I don't know that it matters whether the subject originated in Japan or Germany or Albania.

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Reaver - start with Nison. He's the godfather of candlesticks if you will.

 

Here's 2 reviews I did on TL for a couple books:

http://www.traderslaboratory.com/forums/f8/japanese-candlestick-charting-techniques-second-edition-1561.html

 

http://www.traderslaboratory.com/forums/f8/the-candlestick-course-by-steve-nison-1560.html

 

Steve's website is: http://www.candlecharts.com/

 

Keep in mind that 1 or 2 books is just the tip of the iceberg. I would strongly suggest taking a look at his DVD's as well and/or attend a live event, if you are/get serious about learning more.

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I dont recall Nison claiming this as a "new" technology and claiming it as his own. He may very well be an expert on the subject, but I don't know that it matters whether the subject originated in Japan or Germany or Albania.

 

Hey I've been to Albania!

 

I agree though- Nison definitely didn't say he invented candlesticks...In a stocktickr interview he said that someone from Japan who worked at the same firm as him way back in the day ordered candlestick chart books for their research and he became curious from there.

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Is it me, or is it curious that you'd think that since the candlesticks were developed by rice traders in Japan several centuries ago before the West even knew what they were, that perhaps the experts in this matter might be Japanese?

 

It somewhat amuses, yet appalls me that Westerners should come around to another culture, usurp its technology, and then declare themselves as the experts in the "new" technology.

 

So, with candlesticks, is this the case? Love to hear an Eastern perspective - perhaps Soultrader, you might have some insight or opinion on all of this?

 

thxs

 

cooter - just b/c something originates in a different country does not mean people in other countries cannot use it and/or perfect it. See the car industry for an example. Good ole Ford, Chrysler, etc is where it started and now the foreigners are over taking the 'experts'. How dare they! :confused:

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Steve's bio (in my words) is basically he came across the charts and decided to study them overseas for quite awhile. He then brought the knowledge and ideas back to the US and now we have candlestick charting.

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I also asked this question to myself – what is the best resource to learn candlestick patterns. From many authors I could recommend Nison, Bulkowski and Morris. Those guys are in my opinion the most influential regarding Japanese candles.

 

And here one thing is the theory and the other thing is the practical usage. If you are not a fully (or not at all) algorithmic trader I would definitely recommend a CandleScanner - technical analysis software which allows you to easily scan (without programming) candlestick charts and find all the patterns within seconds (plus a nice performance analysis). I have tested many others but this one seems to be cheap and powerful (apparently people implementing this have a deep knowledge regarding Japanese candlestick).

 

Be careful on many websites and free applications which very often are of bad quality. Simply a lot of people are just copying the others work without even basic understanding of the Japanese candlestick patterns.

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I was wondering: What would you consider the best resource for learning more about candles?

 

I trade momentum and would like to learn more about candles to possibly incorporate them into my method.

 

There are a lot of books, sites etc about candles...but I am hoping someone can help separate the wheat from the chaff a little!

 

 

Thanks!

 

Nate

 

You may check out the chart school of stockcharts.. Its much easier to learn as everything is explained in simple words..

StockCharts.com - ChartSchool

 

There's also a gr8 canclesticks teaching channel on youtube..

[ame=http://www.youtube.com/watch?v=mt2_bm2Xy-4&feature=fvwrel]Candlesticks - Vol 5 - Shooting Star - YouTube[/ame]

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