Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits

By Stephen W. Bigalow

Book Overview

Unlock the secrets of an ancient charting tool The most ancient form of charting, the Japanese candlestick method has become an extremely popular analytical tool among the new generation of traders. However, because of the aura of mysticism surrounding candlesticks and the arcane terminology typically used to describe them, many traders in the West never really learn how to use them properly and exploit their full potential. Profitable Candlestick Trading demystifies candlesticks for today's traders. With the help of numerous real-world examples, Bigalow clearly explains how candlesticks work, how to read them, and how to maximize profits with them. Bigalow shares some of his original candlestick-based trading programs, the same programs which have yielded impressive results for his clients at leading financial firms in the United States and abroad.

• Format: Hardcover
• Language: English
• ISBN: 047102466X
• ISBN13: 9780471024668
• Release Date: December 2001
• Publisher: John Wiley & Sons
• Length: 336 Pages
• Weight: 1.80 lbs.
• Dimensions: 1.2" x 7.2" x 10.3"

Customer Reviews

Best Practical Candlestick Book

This book is the third Candlestick book that I have read cover to cover. The previous two were Steve Nison's two Candlestick books. While Nison's books were excellent and extremely easy to understand, this book concentrates on strategy for making money and gives more trading insights. I have been making money even in this bear market using the trading signals described in the book. The system is simple...use stochastics to confirm candle signals to ensure that you always buy oversold stocks and sell short oversold stocks. If you are a disciplined trader and wait for confirmation of the signals you can be profitable more than 75% of the time and your losses from your losing trades will be minimal if you keep tight stops - A must in these market conditions.There is a huge amount of overlap in Nison's and this book but I would still recommend all three as there is always some different points in each.

Destined to Become a Classic in the Investment Literature!

The art of using Japanese Candlestick charts as a means to finding potential investment ideas has often been considered to be an arcane, complicated process, to be used by only the most sophisticated investors. This has now changed. Mr. Bigalow has truly revealed all the "tricks of the trade" within this book and the companion website.This book not only illustrates and explains every Candlestick signal investors need to know, but the underlying psychology that creates the signals in the first place is also revealed to the reader. But learning and knowing the signals, and understanding how the signals are created, are not of much use unless the investor also has a quick and easy way to FIND the signals on a regular basis. Using a very popular, inexpensive charting service, Mr. Bigalow shows how to set up the software filters so that thousands of stocks can be analyzed, and only the Candlestick charts with the highest profitability potential will be displayed. This search process can be done in a matter of minutes. To my knowledge, this has never been explained in any other book.Mr. Bigalow goes on to explain how to use Candlesticks along with your other favorite technical analysis tools to enhance your trading, why Stochastics are the best single tool to use with Candlesticks, how to identify the "false" signals, how to maximize profits and minimize losses, and "The Ultimate Investment Program", known to only a handful of sophisticated investors until now. By reading and putting into practice the techniques explained in this book and the website, investors truly can "Revolutionize Their Investor Psychology".HIGHLY RECOMMENDED for both novice and sophisticated investors.

Top Trading Book

I have read at least 150 trading books in the last 5 years, jumping from one idea to another, looking for a plan I can feel comfortable with for short-term trading. Stephen Bigalow's book is at the top of my list. Steve supplies excellent descriptions and examples of the major and minor candlestick signals as well as a psychological explanation of them. In addition, this book, unlike other candlestick books I have read, provides a complete trading method for short, intermediate, or long-term traders/investors including money management techniques. A method (unique in my experience)for dealing with the trader's emotions is also described. The book makes candlestick charting understandable for both novice and experienced individuals. I believe the book provides a very readable and useful guide to profiting from the market.

Candlesticks Clarified

I have been fascinated by candlesticks for years but I never had the knowledge or confidence to properly apply the candlestick methodology until I read "Profitable Candlestick Charting". In the past I would see what I thought was a candlstick pattern, but I was never quite sure of the implication of the pattern. Steve Bigalow not only clearly explains how to recognize each reversal or continuation candlestick pattern, but also shows how candlsticks depict the battle between the buyers and sellers and how quickly the market's perception of a stock can change and be recognized by candlestick analysis. Most importantly, he shows how to combine candlestick analysis with stochastics to not only set up high probability trades, but also establishes clear entry and exit rules to limit losses and maximize profits on those trades. In summary, a superb book which brings objectivity to a subjective subject.

Candlesticks Revealed

I have read several books on candlestick formations and signals. This book has to rate as the best, every candle and pattern is explained in a logical sequence but the best is the psychology of the bulls and bears is revealed to the reader. Each candle comes alive, not only is the pattern recognised but the uderlying interaction of the market forces are there for the reader, as though a cloud has been lifted from a dull scene. The Japanese signals are combined with Stochastics but in a simple manner allowing the reader to increase his knowledge and effectiveness of the signals. You will never be puzzled by the chart patterns after reading this book.