![[Review] Candlestick Charting Explained (Gregory L. Morris) Summarized](https://episodes.castos.com/660078c6833215-59505987/images/2326489/c1a-085k3-pkwg585jb1dd-nczcrx.jpg)
Show Notes
Candlestick Charting Explained (Gregory L. Morris)
- Amazon USA Store: https://www.amazon.com/dp/007146154X?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Candlestick-Charting-Explained-Gregory-L-Morris.html
- Apple Books: https://books.apple.com/us/audiobook/technical-analysis-of-the-financial/id1538715265?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Candlestick+Charting+Explained+Gregory+L+Morris+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/007146154X/
#candlestickcharting #technicalanalysis #stocktrading #futurestrading #priceaction #reversalpatterns #trendanalysis #riskmanagement #CandlestickChartingExplained
These are takeaways from this book.
Firstly, Candlestick Foundations and What the Shapes Communicate, A central theme of the book is that candlesticks are not decorative patterns but compact narratives of market psychology. By comparing the relationship between the real body and the shadows, traders can infer where control shifted during a session and how confident that move was. A long body suggests decisive movement, while small bodies reflect hesitation and balance between buyers and sellers. Upper and lower shadows add nuance by showing rejection of higher or lower prices. The book also highlights how the same candle can imply different things depending on location: an identical shape can be meaningful near a major support level yet insignificant in the middle of a range. Morris emphasizes that interpretation begins with structure, including the importance of open and close relative to recent activity, and the need to treat individual candles as building blocks rather than stand alone signals. This grounding helps readers avoid common mistakes such as overreacting to a single dramatic bar or assuming every doji predicts a reversal. Instead, candlesticks become a consistent language for reading momentum, exhaustion, and the balance of power.
Secondly, Reversal Patterns and the Role of Context, The book gives significant attention to reversal behavior, but it frames reversals as probabilistic events that require context and confirmation. Patterns commonly associated with turning points, such as engulfing formations, hammers and hanging man shapes, shooting star type candles, and multi bar structures like morning and evening star configurations, are presented as signals of shifting pressure rather than guaranteed outcomes. Morris stresses that a reversal pattern matters most after a sustained move, where traders are vulnerable to a change in sentiment. A hammer like candle near a well tested support level can suggest absorption of selling, while the same candle during a choppy consolidation may be noise. The discussion also encourages readers to look for supporting evidence such as gaps, expansion in range, or a follow through close in the next session. This approach reduces false positives by requiring the market to confirm the story the candlestick hints at. The practical takeaway is a checklist mentality: identify the prior trend, locate the pattern at a meaningful price zone, and wait for confirmation before committing capital.
Thirdly, Continuation Signals, Trend Quality, and Staying with the Move, Beyond spotting potential tops and bottoms, Morris covers how candlesticks can help traders stay aligned with an existing trend. Continuation patterns and sequences of candles can reveal whether momentum is healthy or weakening. Series of strong closes in the direction of the trend, candles with small countertrend shadows, and orderly pullbacks often indicate persistent demand or supply. In contrast, repeated long wicks against the trend can signal resistance and fading power even if price is still advancing. The book connects these observations to practical decisions, such as adding to positions during controlled retracements, avoiding entries after overextended runs, and recognizing when a trend is transitioning into a range. It also highlights that continuation is often about the absence of reversal evidence, not a single named pattern. By focusing on the quality of closes, the consistency of ranges, and the relationship of candles to recent support and resistance, traders can reduce the temptation to exit too early. The broader message is that candlesticks can function as a trend management tool, not only as an entry trigger.
Fourthly, Combining Candlesticks with Western Technical Tools, A major strength of Candlestick Charting Explained is its insistence on integration. Morris positions candlesticks as complementary to widely used Western methods rather than a replacement. Support and resistance, trendlines, moving averages, chart patterns, and volume analysis can add structure and confirmation to candlestick interpretations. For example, a bullish reversal candle occurring at a rising moving average can carry more weight than the same candle in a downtrend below key averages. Similarly, candlestick clues near prior swing highs and lows can help traders anticipate where other participants may react. The book encourages aligning multiple forms of evidence, such as a reversal pattern plus a break of a short term trendline, or a continuation setup confirmed by volume behavior. This multi tool mindset aims to improve signal quality and reduce overtrading. It also helps readers translate candlestick observations into actionable rules, such as waiting for a close above resistance, using a nearby swing point for stops, and targeting the next supply zone. The outcome is a framework that supports systematic decision making while still respecting price action.
Lastly, Risk Management, Trade Planning, and Real World Application, Morris treats candlesticks as part of a trading process, not a shortcut to prediction. The book repeatedly brings the reader back to trade planning: defining the setup, selecting an entry method, locating an invalidation point, and estimating reward relative to risk. Candlestick structures naturally suggest logical stop placement because many patterns have clear failure levels, such as the low of a hammer or the high of a shooting star type candle. The discussion also reinforces that confirmation can reduce risk, even if it means accepting a slightly worse entry price. For futures and stocks alike, volatility and gaps can affect execution, so position sizing and contingency planning are crucial. Another practical emphasis is learning through chart study: reviewing examples, labeling patterns in context, and tracking outcomes to understand which signals work best for a given market and timeframe. Instead of promoting constant trading, the approach favors selectivity, waiting for alignment among trend, location, and candlestick message. Readers come away with a more disciplined way to translate visual information into repeatable actions, with risk control as the core.
- Amazon USA Store: https://www.amazon.com/dp/007146154X?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Candlestick-Charting-Explained-Gregory-L-Morris.html
- Apple Books: https://books.apple.com/us/audiobook/technical-analysis-of-the-financial/id1538715265?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Candlestick+Charting+Explained+Gregory+L+Morris+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/007146154X/
#candlestickcharting #technicalanalysis #stocktrading #futurestrading #priceaction #reversalpatterns #trendanalysis #riskmanagement #CandlestickChartingExplained
These are takeaways from this book.
Firstly, Candlestick Foundations and What the Shapes Communicate, A central theme of the book is that candlesticks are not decorative patterns but compact narratives of market psychology. By comparing the relationship between the real body and the shadows, traders can infer where control shifted during a session and how confident that move was. A long body suggests decisive movement, while small bodies reflect hesitation and balance between buyers and sellers. Upper and lower shadows add nuance by showing rejection of higher or lower prices. The book also highlights how the same candle can imply different things depending on location: an identical shape can be meaningful near a major support level yet insignificant in the middle of a range. Morris emphasizes that interpretation begins with structure, including the importance of open and close relative to recent activity, and the need to treat individual candles as building blocks rather than stand alone signals. This grounding helps readers avoid common mistakes such as overreacting to a single dramatic bar or assuming every doji predicts a reversal. Instead, candlesticks become a consistent language for reading momentum, exhaustion, and the balance of power.
Secondly, Reversal Patterns and the Role of Context, The book gives significant attention to reversal behavior, but it frames reversals as probabilistic events that require context and confirmation. Patterns commonly associated with turning points, such as engulfing formations, hammers and hanging man shapes, shooting star type candles, and multi bar structures like morning and evening star configurations, are presented as signals of shifting pressure rather than guaranteed outcomes. Morris stresses that a reversal pattern matters most after a sustained move, where traders are vulnerable to a change in sentiment. A hammer like candle near a well tested support level can suggest absorption of selling, while the same candle during a choppy consolidation may be noise. The discussion also encourages readers to look for supporting evidence such as gaps, expansion in range, or a follow through close in the next session. This approach reduces false positives by requiring the market to confirm the story the candlestick hints at. The practical takeaway is a checklist mentality: identify the prior trend, locate the pattern at a meaningful price zone, and wait for confirmation before committing capital.
Thirdly, Continuation Signals, Trend Quality, and Staying with the Move, Beyond spotting potential tops and bottoms, Morris covers how candlesticks can help traders stay aligned with an existing trend. Continuation patterns and sequences of candles can reveal whether momentum is healthy or weakening. Series of strong closes in the direction of the trend, candles with small countertrend shadows, and orderly pullbacks often indicate persistent demand or supply. In contrast, repeated long wicks against the trend can signal resistance and fading power even if price is still advancing. The book connects these observations to practical decisions, such as adding to positions during controlled retracements, avoiding entries after overextended runs, and recognizing when a trend is transitioning into a range. It also highlights that continuation is often about the absence of reversal evidence, not a single named pattern. By focusing on the quality of closes, the consistency of ranges, and the relationship of candles to recent support and resistance, traders can reduce the temptation to exit too early. The broader message is that candlesticks can function as a trend management tool, not only as an entry trigger.
Fourthly, Combining Candlesticks with Western Technical Tools, A major strength of Candlestick Charting Explained is its insistence on integration. Morris positions candlesticks as complementary to widely used Western methods rather than a replacement. Support and resistance, trendlines, moving averages, chart patterns, and volume analysis can add structure and confirmation to candlestick interpretations. For example, a bullish reversal candle occurring at a rising moving average can carry more weight than the same candle in a downtrend below key averages. Similarly, candlestick clues near prior swing highs and lows can help traders anticipate where other participants may react. The book encourages aligning multiple forms of evidence, such as a reversal pattern plus a break of a short term trendline, or a continuation setup confirmed by volume behavior. This multi tool mindset aims to improve signal quality and reduce overtrading. It also helps readers translate candlestick observations into actionable rules, such as waiting for a close above resistance, using a nearby swing point for stops, and targeting the next supply zone. The outcome is a framework that supports systematic decision making while still respecting price action.
Lastly, Risk Management, Trade Planning, and Real World Application, Morris treats candlesticks as part of a trading process, not a shortcut to prediction. The book repeatedly brings the reader back to trade planning: defining the setup, selecting an entry method, locating an invalidation point, and estimating reward relative to risk. Candlestick structures naturally suggest logical stop placement because many patterns have clear failure levels, such as the low of a hammer or the high of a shooting star type candle. The discussion also reinforces that confirmation can reduce risk, even if it means accepting a slightly worse entry price. For futures and stocks alike, volatility and gaps can affect execution, so position sizing and contingency planning are crucial. Another practical emphasis is learning through chart study: reviewing examples, labeling patterns in context, and tracking outcomes to understand which signals work best for a given market and timeframe. Instead of promoting constant trading, the approach favors selectivity, waiting for alignment among trend, location, and candlestick message. Readers come away with a more disciplined way to translate visual information into repeatable actions, with risk control as the core.
