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

Gregory L. Morris (Author)

Book Description

Publication Date: July 1, 1995

Japanese candlesticks are one of the most important technical tools used in the market. Candlestick Charting Explained demonstrates how candlestick charts can be used to identify and anticipate price patterns in the financial and commodity markets. A comprehensive and authoritative overview, Candlestick Charting Explained describes how to combine candlestick charts with other technical tools to identify profitable trades. Clearly written and illustrated, this is a superb book for any trader who wants to master this powerful trading system.

Specific topics include:

• Candlestick charts versus bar charts
• Philosophy of candlestick pattern recognition
• Reversal and continuation pattern recognition
• Reversal and continuation patterns using candlesticks
• Trading with candlesticks

Product Details

• Paperback: 300 pages
• Publisher: McGraw-Hill; 2nd edition (July 1, 1995)
• Language: English
• ISBN-10: 1557388911
• ISBN-13: 978-1557388919
• Product Dimensions: 9.7 x 6.9 x 0.7 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (21 customer reviews)
• Amazon Best Sellers Rank: #790,866 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

107 of 109 people found the following review helpful:

3.0 out of 5 stars Some more depth would be nice ..., July 25, 2000

By 

Oavde "oavde" (Australia) - See all my reviews

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

I would more accurately give this book 3 1/2 stars ...I am a firm believer in Candlestick charting - not because it is foolproof, and not for some mystical ancient timeless qualities it possesses in predicting stocks.

The simple fact is, it is much easier to recognise patterns by looking at a "candle" rather than looking at the western plot (which I find visually confusing, especially if the graphs are cramped). Using candlesticks has its flaws but overall I think it is a good way to view price data.

The book: a bit light, however substantially more depth than anything I have found for free on the web, and I have found a lot. The book takes a pattern, shows you what is likely to happen next, explains deviations from normal and also tells you to what degree confirmation recommended. It is easy to use as reference.

It gave me enough information to create my own computerised candlestick recognition software .. the book also contains statistics from their own software, e.g the percentage of times they found "hammers" or "doji" patterns - this was interesting.

I chose this book over the work by Nison because it was 1. cheaper and 2. it was recommended on an investor site as being better organised than Nisons' work ... and it is very well organised. Also nobody really grilled it in a review.

However, I still plan to purchase the books by Nison to expand my understanding ... that does not mean this is a bad book, I just want more information. I would want an entire book just on the fascinating history of the ancient inventor of candlesticks, Sakata, what a character. I would not mind reading a translation of his work. Also I would like more insights into the psychological interpretations.

I recommend taking a look at this book and at Nisons', and deciding then. It is quite a good book. But don't expect any one book to give you everything you need to become a successful trader, that will take perspective, experience and a watchful eye.

73 of 73 people found the following review helpful:

5.0 out of 5 stars at the price the best, August 15, 2002

By 

Georgina "tville" (san francisco, ca) - See all my reviews

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

A great question is which is better: Nison or Morris? Nison is for those who use indicators; Morris is the purist using only volume.
Reference book? Morris gives you the picture and the explanation in an easy format and an index to find it. He also breaks the candles into groups and types. This is the valuable part of the book.
Who is more in depth? Well that's a tie with Morris winning slightly on candles & losing if you want to view the whole Japanese charting world, Kagi, Renko, 3 line break. Nison gives other Japanese charting types weight in the book which is good if you have Metastock bad if you don't. Personally I like the other methods.
So why did I give Morris the nod? As a professional trader I can't really give away an edge except that Morris is more tuned towards stocks & gives hints that Nison did not.
Nison is also a boring writer, better lecturer. Morris is a better writer, teacher.
Remember Morris gives you everything and if that's not enough then you're not reading carefully; looking over these previous reviews makes me happy because they obviously missed Morris' hints and guides. I saw them and my trading improved & I had used Candles for a long time before getting to Morris ala Nison & began to think them worthless. Now I understand their role.

Enough said.

38 of 38 people found the following review helpful:

5.0 out of 5 stars Useful and Profitable From The First Line, November 4, 2001

By 

Dr. Joe Duarte "J. Duarte www.joe-duarte.com" (Dallas, TX USA) - See all my reviews

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

As a professional money manager and author, I found this book a must have for the entire spectrum of investors.

Greg Morris is the Morris in murphymorris.com, the vehicle for technical analysis guru and frequent CNBC guest John Murphy, whose ongoing analysis and excellent history of prescient market calls places him in the Hall of Fame.

Candlestick charts are standard in most charting programs and have become the hallmark of day traders. But this is an ancient art from the Far East, which Greg was among the first to champion, and popularize. Greg studied the art in person while in Japan and learned not just the technique, but the cultural and more deeply rooted use of this useful form of analysis. It is this in depth knowledge, combined with Greg's conversational and easy to read style which makes this book a classic.

Greg is a trader, and makes this clear throughtout the book, sticking to the business at hand, and not reminiscing about his own personal glory, or useless anecdotes. The book is immediately useful and made a great difference in my own ability to analyze stocks and make trading decisions.

Especially useful and extremely important are the sections which deal with candlestick patterns which alert the trader as to potential upcoming changes in the trend. These have saved me many times, and have allowed me to both buy and sell correctly when other popular methods have not.

Just that is worth the price of the book.