V. 9:13 (527-529): Quick-Scans: JAPANESE CANDLESTICK CHARTING TECHNIQUES

JAPANESE CANDLESTICK CHARTING TECHNIQUES

A Contemporary Guide to the Ancient Investment Techniques of the Far East

New York Institute of Finance

Simon & Schuster Professional Information Group

2 Broadway

New York, NY 10004-2207

(212) 344-2900

Author: Steve Nison

Price: $65.00

Pages: 310

Steve Nison, the leading proponent of candlestick charting in the United States, has completed his 20-chapter contribution for technicians on the subject of candlestick charting. For those of you unfamiliar with the candlestick method of charting, the technique uses the same price data that bar charting does. The opening, high, low and close make up the candlestick chart. The difference lies in the use of the relationship between the close and the opening. A bar chart plots the high and the low as a vertical bar, a simple horizontal dash on the left side of the bar for the opening and a horizontal dash on the right side for the close. A candlestick chart, on the other hand, plots the high and the low, but the price range between the opening and the close is drawn as a narrow rectangular box known in the technique as the "real body." The high and lows typically extend beyond the real body and are known as the shadows. A session with a close higher than the opening has an empty, or white, body. If the box is black, or filled in, the close for that day was lower than the opening. A computer is not required to produce these charts. An analyst could simply draw the white body with a red pen. The classic Japanese candlestick charts use red and blackbodies. The Japanese place a great deal of importance on the opening and the close because they are the two most emotionally charged points of the trading day.