![[Review] Japanese Candlestick Charting Techniques, Second Edition (Steve Nison) Summarized](https://episodes.castos.com/660078c6833215-59505987/images/2328628/c1a-085k3-okpm4901tj7k-bfxiag.jpg)
Show Notes
Japanese Candlestick Charting Techniques, Second Edition (Steve Nison)
- Amazon USA Store: https://www.amazon.com/dp/0735201811?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Japanese-Candlestick-Charting-Techniques%2C-Second-Edition-Steve-Nison.html
- Apple Books: https://books.apple.com/us/audiobook/in-the-crypt-with-a-candlestick/id1496014207?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Japanese+Candlestick+Charting+Techniques+Second+Edition+Steve+Nison+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0735201811/
#candlestickpatterns #technicalanalysis #priceaction #supportandresistance #tradingpsychology #JapaneseCandlestickChartingTechniquesSecondEdition
These are takeaways from this book.
Firstly, Candlesticks as a visual language of market psychology, A core theme is that candlesticks compress the struggle between supply and demand into an easily interpreted picture. The book breaks down how the open, high, low, and close form candle bodies and shadows, and why those shapes matter. Long bodies can reflect strong conviction, while small bodies may signal indecision. Long upper or lower shadows often suggest rejection of higher or lower prices, turning a simple bar of data into a story about failed advances, failed selloffs, or late session reversals. This psychological framing helps readers move beyond memorizing names and instead interpret what participants likely did during the session. The second edition treatment also encourages readers to compare the current candle to recent candles, since relative size and placement frequently determine meaning. A small real body after a series of strong candles carries a different implication than the same small body inside a choppy range. By connecting patterns to crowd behavior, the approach helps traders develop chart literacy that can be applied across time frames, from intraday moves to longer term swings, without relying on any single indicator as a crutch.
Secondly, Single and multi candle patterns and what they typically signal, The book organizes candlestick signals into recognizable structures, starting with single candle ideas and building toward multi candle formations. Readers learn how certain shapes often appear near turning points, such as candles that show strong rejection after a directional push, as well as patterns that hint at continuation when buyers or sellers maintain control. Multi candle combinations are presented as evolving sequences, where the relationship between consecutive opens and closes can suggest shifts in dominance. The practical value is not just identifying a formation, but assessing whether the surrounding trend makes a reversal interpretation plausible or whether the same pattern should be treated cautiously inside a range. The book underscores that candlesticks are probabilities, not guarantees, and that traders should avoid acting on pattern names alone. It also highlights that similar looking patterns can have different implications depending on volatility and recent price travel. By teaching how to read the progression of candles, the text encourages traders to think in terms of pressure, response, and follow through, which is essential for timing entries and exits more precisely than with many lagging tools.
Thirdly, Using candlesticks with Western technical tools for confirmation, A major strength of the work is its integration of candlesticks with familiar Western techniques. Candlestick signals become more robust when they align with trendlines, moving averages, chart patterns, or key support and resistance levels. For example, a reversal style candle occurring at a well defined prior low, a Fibonacci area, or a major moving average can carry more weight than the same candle in the middle of nowhere. The book teaches readers to look for confluence rather than chasing every pattern, and to treat candles as timing and risk placement tools within a broader plan. It also covers how classical concepts like gaps, breakouts, and congestion zones can be evaluated through candlestick behavior to gauge the quality of the move. This blending helps reduce false signals because it encourages waiting for the market to show agreement across multiple perspectives. The reader comes away with a framework where candlesticks sharpen entries and exits, while Western tools provide structure and context. In practice, this can lead to clearer trade hypotheses, better defined invalidation points, and fewer impulsive decisions driven by a single chart feature.
Fourthly, Trend, range, and context: where candlestick signals work best, Candlestick patterns do not have universal meaning without context, and the book repeatedly returns to the importance of where a signal appears. In a strong trend, many reversal looking candles can fail because momentum persists, while in a mature trend with slowing progress, the same candle might be an early warning. The text encourages mapping the market structure first by identifying whether price is trending, consolidating, or transitioning. Within ranges, candles often reveal who is defending boundaries and whether attempts to break out are being rejected or accepted. Around inflection zones, candles can help readers detect loss of control, such as when aggressive pushes are met with swift counter pressure. The book also emphasizes using nearby levels to define risk, since context determines where a trade idea is proven wrong. This topic teaches traders to stop treating charts as pattern catalogs and instead evaluate the environment that gives a pattern its edge. By focusing on trend stage, volatility, and proximity to meaningful levels, readers can filter signals, improve timing, and avoid overtrading low quality setups that look attractive only in isolation.
Lastly, Risk management and practical trade planning with candlestick signals, While candlesticks are often marketed as entry triggers, the book frames them as tools for building complete trade plans. A candle formation can suggest a thesis, but the trader still needs an entry approach, a protective stop location, and a target or exit rule. Candles can help with all three because their highs, lows, and closes create logical reference points for invalidation. The book advocates confirmation and disciplined execution, which can mean waiting for follow through or using additional evidence before committing capital. It also addresses that patterns can fail, so position sizing and risk limits matter more than any single signal. Candlesticks can help traders manage trades by indicating momentum changes, stalling, or rejection near objectives, supporting more informed scaling or exit decisions. This practical orientation is valuable because it moves the reader from recognition to application. Rather than encouraging prediction, the approach encourages conditional thinking: if price behaves in a certain way after a pattern appears, the trade thesis remains viable, and if it does not, the trader exits efficiently. This mindset can reduce emotional decision making and improve consistency over time.
- Amazon USA Store: https://www.amazon.com/dp/0735201811?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Japanese-Candlestick-Charting-Techniques%2C-Second-Edition-Steve-Nison.html
- Apple Books: https://books.apple.com/us/audiobook/in-the-crypt-with-a-candlestick/id1496014207?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Japanese+Candlestick+Charting+Techniques+Second+Edition+Steve+Nison+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0735201811/
#candlestickpatterns #technicalanalysis #priceaction #supportandresistance #tradingpsychology #JapaneseCandlestickChartingTechniquesSecondEdition
These are takeaways from this book.
Firstly, Candlesticks as a visual language of market psychology, A core theme is that candlesticks compress the struggle between supply and demand into an easily interpreted picture. The book breaks down how the open, high, low, and close form candle bodies and shadows, and why those shapes matter. Long bodies can reflect strong conviction, while small bodies may signal indecision. Long upper or lower shadows often suggest rejection of higher or lower prices, turning a simple bar of data into a story about failed advances, failed selloffs, or late session reversals. This psychological framing helps readers move beyond memorizing names and instead interpret what participants likely did during the session. The second edition treatment also encourages readers to compare the current candle to recent candles, since relative size and placement frequently determine meaning. A small real body after a series of strong candles carries a different implication than the same small body inside a choppy range. By connecting patterns to crowd behavior, the approach helps traders develop chart literacy that can be applied across time frames, from intraday moves to longer term swings, without relying on any single indicator as a crutch.
Secondly, Single and multi candle patterns and what they typically signal, The book organizes candlestick signals into recognizable structures, starting with single candle ideas and building toward multi candle formations. Readers learn how certain shapes often appear near turning points, such as candles that show strong rejection after a directional push, as well as patterns that hint at continuation when buyers or sellers maintain control. Multi candle combinations are presented as evolving sequences, where the relationship between consecutive opens and closes can suggest shifts in dominance. The practical value is not just identifying a formation, but assessing whether the surrounding trend makes a reversal interpretation plausible or whether the same pattern should be treated cautiously inside a range. The book underscores that candlesticks are probabilities, not guarantees, and that traders should avoid acting on pattern names alone. It also highlights that similar looking patterns can have different implications depending on volatility and recent price travel. By teaching how to read the progression of candles, the text encourages traders to think in terms of pressure, response, and follow through, which is essential for timing entries and exits more precisely than with many lagging tools.
Thirdly, Using candlesticks with Western technical tools for confirmation, A major strength of the work is its integration of candlesticks with familiar Western techniques. Candlestick signals become more robust when they align with trendlines, moving averages, chart patterns, or key support and resistance levels. For example, a reversal style candle occurring at a well defined prior low, a Fibonacci area, or a major moving average can carry more weight than the same candle in the middle of nowhere. The book teaches readers to look for confluence rather than chasing every pattern, and to treat candles as timing and risk placement tools within a broader plan. It also covers how classical concepts like gaps, breakouts, and congestion zones can be evaluated through candlestick behavior to gauge the quality of the move. This blending helps reduce false signals because it encourages waiting for the market to show agreement across multiple perspectives. The reader comes away with a framework where candlesticks sharpen entries and exits, while Western tools provide structure and context. In practice, this can lead to clearer trade hypotheses, better defined invalidation points, and fewer impulsive decisions driven by a single chart feature.
Fourthly, Trend, range, and context: where candlestick signals work best, Candlestick patterns do not have universal meaning without context, and the book repeatedly returns to the importance of where a signal appears. In a strong trend, many reversal looking candles can fail because momentum persists, while in a mature trend with slowing progress, the same candle might be an early warning. The text encourages mapping the market structure first by identifying whether price is trending, consolidating, or transitioning. Within ranges, candles often reveal who is defending boundaries and whether attempts to break out are being rejected or accepted. Around inflection zones, candles can help readers detect loss of control, such as when aggressive pushes are met with swift counter pressure. The book also emphasizes using nearby levels to define risk, since context determines where a trade idea is proven wrong. This topic teaches traders to stop treating charts as pattern catalogs and instead evaluate the environment that gives a pattern its edge. By focusing on trend stage, volatility, and proximity to meaningful levels, readers can filter signals, improve timing, and avoid overtrading low quality setups that look attractive only in isolation.
Lastly, Risk management and practical trade planning with candlestick signals, While candlesticks are often marketed as entry triggers, the book frames them as tools for building complete trade plans. A candle formation can suggest a thesis, but the trader still needs an entry approach, a protective stop location, and a target or exit rule. Candles can help with all three because their highs, lows, and closes create logical reference points for invalidation. The book advocates confirmation and disciplined execution, which can mean waiting for follow through or using additional evidence before committing capital. It also addresses that patterns can fail, so position sizing and risk limits matter more than any single signal. Candlesticks can help traders manage trades by indicating momentum changes, stalling, or rejection near objectives, supporting more informed scaling or exit decisions. This practical orientation is valuable because it moves the reader from recognition to application. Rather than encouraging prediction, the approach encourages conditional thinking: if price behaves in a certain way after a pattern appears, the trade thesis remains viable, and if it does not, the trader exits efficiently. This mindset can reduce emotional decision making and improve consistency over time.
