Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures [Paperback]

Gregory Morris (Author), Greg L. Morris (Author)

Book Description

Publication Date: March 27, 2006

Master this powerful trading system and identify the best trades

Inside this book you will discover candlestick charting, one of the most popular tools in technical analysis. Candlestick Charting Explained features updated charts and analysis as well as new material on integrating Western charting analysis with Japanese candlestick analysis, grouping candlesticks into families, detecting and avoiding false signals, and more.

Editorial Reviews

From the Back Cover

The classic Japanese candlestick reference, updated with all-new insights and tools to improve your predictive accuracy

Candlestick Charting Explained takes the subjectivity out of Japanese candlestick analysis by providing you with standardized, straightforward coverage of 89 powerful candlestick patterns. Inside you will learn what they indicate about current trader behavior and how you can use each to instantly improve your market knowledge and analytical precision.

In this revised and expanded third edition, candlestick expert Greg Morris updates his influential guidebook with valuable new material and patterns to give you:

• Thorough coverage of candlestick patterns to allow instant analysis of investor attitude and probable market direction
• Methods for integrating candlesticks with traditional Western charting analysis for enhanced signal verification
• Completely new section by Ryan Litchfield dedicated to "Trading with Candlesticks"
• Current insights into trader psychology, and how it impacts interactions between buyers and sellers

Its in-depth exploration of traditional as well as all-new candlestick charts, Candlestick Charting Explained will show you how to make candlestick charting a logical, understandable, and profitable component of your current trading program.

Empower your trading with Japanese candlestick charting

Japanese candlestick charts dramatically improve your understanding of short-term (less than a week) market sentiment, making you a much more informed and focused trader of stocks, futures, and indices. The bestselling Candlestick Charting Explained focuses on the patterns themselves and highlights the key facts you need to know to apply each pattern to your trading. For each of 89 distinctive candle patterns, its standardized format provides you with:

• Commentary--Description of pattern and significance of its name, insights into unique features, and other concise explanation
• Rules of Recognition--Simple rules for quick, accurate identification along with precise, day-by-day descriptions of pattern development
• Scenarios and Psychology Behind the Pattern--Trading scenarios that could have led to the pattern's development, with general discussion of the psychology of each
• day's action
• Pattern Flexibility--Situations that change the pattern's effectiveness with explanations of allowable deviations from the classic pattern
• Pattern Breakdown--Instructions for reducing the pattern to a single candle line and whether or not outside confirmation is suggested or unnecessary
• Related Patterns--Patterns that have similar formations, could be considered variations, or are a part of this pattern
• Example--A graphic example of the pattern to both aid in recognition and eliminate costly confusion in pattern identification

Additional information and insights present different interpretations of candlesticks based on intraday instead of end-of-day events and action, improving signal reliability. The author's unique candle pattern filtering concept, instrumental in answering the "how" question, is updated to utilize today's larger universe of stock data. An all-new chapter provides practical application and perspective traders need to view candles in the context of today's computer-driven marketplace.

For millions of traders, candlesticks have become a key tool in creating and verifying trading signals. Candlestick Charting Explained is the only book you need to start integrating their proven versatility and effectiveness into your technical trading program.

About the Author

Gregory L. Morris is a portfolio manager for PMFM, Inc., managing the PMFM Core Advantage Portfolio Trust mutual fund. One of the world's leading experts on candlestick charting, Morris is a consultant and the former CEO of MurphyMorris.com, which he and a partner founded and later sold to StockCharts.com. He is the author of The Complete Guide to Market Breadth Indicators, along with numerous articles for professional publications, and has spoken to thousands of traders and investors at industry conferences around the world.

Product Details

• Paperback: 550 pages
• Publisher: McGraw-Hill; 3 edition (March 27, 2006)
• Language: English
• ISBN-10: 007146154X
• ISBN-13: 978-0071461542
• Product Dimensions: 9.2 x 7.4 x 1.4 inches
• Shipping Weight: 2 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (24 customer reviews)
• Amazon Best Sellers Rank: #233,540 in Books (See Top 100 in Books)

More About the Author

Gregory L. Morris is Sr. Vice President and the Chief Technical Analyst for Stadion Money Management, Inc. (formerly PMFM, Inc.) In this capacity Greg educates institutional and individual clients on the merits of technical analysis and why Stadion utilizes a technical rules-based model to oversee the management of over $6 Billion in assets in two mutual funds, separate accounts, and 401k plans. From December, 2003 to May, 2005, Greg served as a Trustee and advisor to the MurphyMorris ETF Fund. He also served as Treasurer and Chief Executive Officer of MurphyMorris Money Management Co, the Advisor to the Fund.

Greg has written 3 books with McGraw-Hill; The Complete Guide to Market Breadth Indicators, a book introducing market breadth analysis for investors. A third edition to his best-selling and vastly expanded Candlestick Charting Explained was released in March, 2006, and Candlestick Charting Explained Workbook in 2011.

From 1996 to 2002, Greg was CEO of MurphyMorris.Inc., the leading provider of web-based market analysis tools and commentary, with his partner, John Murphy, a former CNBC analyst. MurphyMorris, Inc. was acquired by StockCharts.com, Inc. in October, 2002. In 1999, Greg and three associates started MurphyMorris Money Management Co. to manage assets for individuals. This focus was later changed to address the firm becoming the Advisor to the MurphyMorris ETF Fund in January, 2004, and later merged into the PMFM family of funds.

From 1994 to 1996, he was President of G. Morris Corporation, a Dallas, Texas headquartered business that provided products and services for investors and traders. His lead product was a series of over 450 Indicators & Trading Systems that supported most windows-based technical analysis software packages. From 1993 to 1994, Greg was part of MarketArts, Inc. which launched the first windows-based technical analysis software program, Windows on Wall Street.

In 1992 he published a book on Japanese candlestick analysis called CandlePower, now available in soft cover as Candlestick Charting Explained (McGraw-Hill). Widely recognized as an expert on candlesticks and the developer of candlestick filtering, he has lectured around the world on the subject. In May, 1989, he was awarded outstanding alumni for 1989 from Pratt County College. From 1982 until 1993, he worked in association with N-Squared Computing, producing over 15 technical analysis and charting software titles, many of which are actively used today.

He graduated from the University of Texas at Austin in 1971, has a BS degree in Aerospace Engineering, has authored numerous investment-related articles, speaks at numerous seminars and investment groups, appeared many times on Financial News Network (FNN), Fox Business, CNBC, and Bloomberg TV. Greg was featured in Business Week in July 2008. Greg was invited to Italy, Brazil, Canada, and China in 2008 to lecture on the merits of technical market analysis. From 1971 to 1977, he was a Navy F-4 fighter pilot aboard USS Independence who was selected for, and graduated from, the Navy Fighter Weapons School known as Top Gun. Married with two adult children (both engineers) and two step children, Greg and his wife, Laura, live in the mountains of North Georgia.

Customer Reviews

Most Helpful Customer Reviews

59 of 60 people found the following review helpful:

5.0 out of 5 stars Better than Steve Nison's book, September 14, 2008

By 

Vira Lata (itajubá, Brasil) - See all my reviews

This review is from: Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures (Paperback)

I had already read this book and Steve Nison's Japanese Candlestick Charting Techniques.

If you want to buy a book about candlestick both books have the same content about all the candlestick patterns and the descrition about them.

Japanese Candlestick Charting Techniques:
- has chapters about the relationship of candlestick with Volume, Support and Resistence, trendlines, Indicators (MACD,IFR,etc). This is VERY GOOD. Realy good.
- It has many examples discussed too. More than this book.

This book has:
- a chapter about Trading with Candlesticks that has content about trendlines, supports, etc.
- a lot of statistics of the patterns.

One great difference is that this book is easier to use. It has a standardized format for all the patterns with Commentary, Rules, Psychology Behind the Pattern, Flexibility, Pattern Breakdown, Related Patterns, Examples. This is VERY GOOD. It's only search the pattern and read what you want to know. It has a table with a resume about the pattern too.

Steve Nison's book isn't objective and it is not hands-on. You are reading an example, but... where is the picture?? You have to turn the pages searching the picture and them back to the curretly page to keep going. To do that for more than 300 pages is very, VERY BAD. Really. Trust me. You need to have a lot of patience.

Well, if you read one of these books, don't worry: you will know all about candlesticks. But this book is easier to use and to consult.
And it is cheaper than Steve Nison's book.

Abrax!!!

57 of 59 people found the following review helpful:

5.0 out of 5 stars Fantastic tool for learning to use Candlesticks, April 17, 2007

By 

AK (Kentucky) - See all my reviews

This review is from: Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures (Paperback)

I am quite surprised at how useful the book is for my trading. I'm currently a day trader that trades momentum. I have been starting to use Candlesticks in the last year or two to try to enhance my entries and exits. My profitable trade percentages are increasing and my trade exit timeliness is getting better (thanks to candlesticks). The whole candlestick concept was hard for me to swallow but the more I got into it, I realized it was a visual pattern recognition concept. The book does a great job of explaining all of the useful candlestick formations as well as backing the explanations up with examples. I really liked the second half of the book that did a very thorough statistical analysis of the candlestick signals over multiple timeframes. I learned alot from the book and will add its extensive data into my stock trading techniques. Well done....

21 of 23 people found the following review helpful:

5.0 out of 5 stars Novice at Candlestick Charting, July 8, 2007

By 

Risk Manager "Risk Manager" (Connecticut) - See all my reviews

This review is from: Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures (Paperback)

Great book, great content. You really need to absorb the direction of the method by reading this book 2 - 3 times. This isn't because of poor writing. This book is well written. It is due to the mindset required to fully understand the patterns for a novice like myself. I did find that it is one more tool to use to validate a trend or reversal. it has helped me with more than one profitable decision.