Japanese Candlestick Charting Techniques, by Steve Nison
Visually, Candlestick charts allow for a quick assessment of a trading session’s activity. One can quickly learn how to interpret the display of candlesticks…
Honestly, I’m not much of one for measuring implications or drawing conclusions from a single session’s OHLC profile. I usually “zoom out” where a single session’s characteristics doesn’t affect my decisionmaking.
But what really tickles me are the names that have been given to the chart patterns that traders have identified since the days of feudal Japan. Being understood when saying: “Double Doji Death Star”, is almost an invaluable experience…
But the attractive beauty (for me) of candlesticks is that they are robust and scalable, such that any periodicity and frequency won’t detract from their relevance.
4 data points, colors, outlines… Chart reading ability that doesn’t diminish as I squint at the screen when looking at charts… Winner!