The author does show times when the signals fail and has a humorous introduction to the start of the chapter on Doji's where he talks about people attending his seminars as getting way too excited about Doji everywhere, and most likely using them as naked 'objective' signals.Īnyway the examples are so clean at times and lead to massive movements one might start to think 'I need to get into a trade that shows x pattern because it's going to gap up like crazy the next day', or maybe even think, why don't I just look for x pattern and then go for a low delta / out of the money Option and clean up? My guess is that will be a very disappointing endeavor.īut that's most trading books where the examples all look so good and clean in a way live charts rarely look as they are unfolding. The big problem I have with the book, which isn't the 'subjective' element that one reviewer complained about (which sort of misses the point I think of using any tool for trading) is that I think the examples are too clean. These days candlesticks are so commonplace that the idea of selling traders on their utility seems kind of unnecessary, but then again this book probably helped to their new massive acceptance. The most valuable thing about these colorful names is it kind of helps explain or give a metaphor to what could be happening on a particular candle/bar or group of candles/bars. I don't know what this book was like when it was first written, I can't imagine that it was really all that mind blowing, except that it maybe gave Western traders very colorful names for different types of price action. Nobody who really makes money in the market uses this stuff, and I know what I'm talking about.' My favorite review I saw of this book was nice and short, 'A worthless piece of crap.

Candlestick charting basics steve nison