Encyclopedia of Candlestick Charts (Wiley Trading) [Hardcover]

Thomas N. Bulkowski (Author)

Book Description

ISBN-10: 0470182016 | ISBN-13: 978-0470182017 | Publication Date: March 7, 2008 | Edition: 1

Following in the footsteps of author Thomas Bulkowski’s bestselling Encyclopedia of Chart Patterns—and structured in the same way—this easy-to-read and -use resource takes an in-depth look at 103 candlestick formations, from identification guidelines and statistical analysis of their behavior to detailed trading tactics. Encyclopedia of Candlestick Charts also includes chapters that contain important discoveries and statistical summaries, as well as a glossary of relevant terms and a visual index to make candlestick identification easy.

Editorial Reviews

Review

"This book is a handy reference for beginners to advanced Technical Analysts. It contains statistical data for the performance of over 100 Candlestick patterns in both bull and bear markets, offers identification guidelines, and explores the performance of tall versus short candles and shadows. Of particular interest are the chapters which delve into important discoveries and those which explain each Table entry in detail and discuss the methodologies behind them. A useful addition it the visual index. Overall the easy to read makes this book a welcome addition to most Technical Analysis bookcases."
—IFTA Journal

From the Inside Flap

Candlesticks can help you become a better trader, but only if you learn how they work, know what to look for, and understand the trading setups that can bring out their best. Encyclopedia of Candlestick Charts can help you do all this and much more.

Following in the footsteps of author Thomas Bulkowski's bestselling Encyclopedia of Chart Patterns—and structured in the same way—this easy-to-read and -use reference book takes an in-depth look at 103 candlestick formations, from identification guidelines and statistical analysis of their behavior to detailed trading tactics.

In each chapter of Encyclopedia of Candlestick Charts, you'll find:

• Behavior and Rank, which show how each candle is theoretically supposed to work and how it actually does in both bull and bear markets, including rankings against other candlesticks plus the psychology behind the pattern

• Identification Guidelines that describe what to look for

• Statistics, which include the following tables: general statistics, height statistics, andvolume stats

• Trading Tactics that discuss strategies to increase profits and minimize risk, plus tables of reversal rates and indicators to improve performance

• Sample Trades, which walk you through a hypothetical or actual trade using real data

• For Best Performance, a quick-reference tableof selection tips to boost performance

Encyclopedia of Candlestick Charts also includes chapters that contain important discoveries, statistical summaries, a discussion of distinct methodologies that explain each table entry in detail, a glossary of relevant terms, and a visual index to make candlestick identification easy.

Whether you're a novice trader or an experienced hedge fund manager, the Encyclopedia of Candlestick Charts has something for you. No other book combines a comprehensive list of candlesticks with a statistical review of their performance—in both bull and bear markets—in one easily accessible package. The information you find here will quickly enhance your understanding of this field and allow you to trade in a more effective way.

See all Editorial Reviews

Product Details

• Hardcover: 960 pages
• Publisher: Wiley; 1 edition (March 7, 2008)
• Language: English
• ISBN-10: 0470182016
• ISBN-13: 978-0470182017
• Product Dimensions: 10.1 x 7.2 x 1.6 inches
• Shipping Weight: 3.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #169,292 in Books (See Top 100 in Books)
  • #20 in Books > Education & Reference > Encyclopedias > Business

More About the Author

Thomas N. Bulkowski is recognized by many as one of the world's leading authorities on chart patterns. He is a successful investor and trader with nearly thirty years of experience trading stocks. He is also the author of the books Encyclopedia of Candlestick Charts; Encyclopedia of Chart Patterns, Second Edition; Trading Classic Chart Patterns; and Getting Started in Chart Patterns. His best selling books have been translated into six languages. One hundred articles of his have been published in Active Trader; Stocks, Futures and Options; The Technical Analyst; Traders'; The Trader's Journal and Technical Analysis of Stocks & Commodities magazines.

Before earning enough from his investments to "retire" from his day job at age thirty-six, Bulkowski was a hardware design engineer at Raytheon, a senior software engineer for Tandy Corporation, and a software manager for Tracor-Westronics.

He was the vice president of membership and later treasurer of the Keller Chamber of Commerce, chairman of the Keller Parks and Recreation board, president of Keep Keller Beautiful, vice president of the Friends of the Keller Library and charter member of the Keller Writers' Association. He also authored the Keller Recycling Task Force report and Park System Study for the City of Keller.

In his spare time, he likes to wander around his back yard looking for toads, spiders, snakes, and other inhabitants and then photograph them, occasionally play guitar while watching birds visit the bath or feeder, putter around in his garden, read and write fiction, and sneak up on his dog.

Customer Reviews

Most Helpful Customer Reviews

33 of 36 people found the following review helpful:

3.0 out of 5 stars A Good Book, BUT..., May 11, 2008

By 

PVB (New York, NY USA) - See all my reviews

This review is from: Encyclopedia of Candlestick Charts (Wiley Trading) (Hardcover)

A good book for anyone having a desire to learn about candlestick patterns, but I feel the author misses the point. Too many wordy statistics and not enough visuals. Candlestick patterns visually show investor sentiment. This sentiment is especially important when prices approach critical points of support and resistance. Showing more charts on how these patterns react at these critical junctures under various conditions would have been more helpful.

Candlestick patterns IMPLY a change of trend, they DO NOT guarantee it. They are just another indicator reflecting the bullish or bearish implications they represent. A trader must take into account where within the OVERALL TECHNICAL PICTURE the pattern appears and the health of the market. By blending candlestick patterns with Western technical analysis you are getting the best of both worlds.

Strong trends do not turn on a dime. They may require several candlestick signals before changing trend direction. By combining the current investor sentiment and potential behavior candlesticks imply you will, in most cases, be given an early VISUAL warning that all may or may not be right with the current trend.

Candlesticks should not be viewed in isolation. For example, a shooting star, a bearish pattern, appearing at the top of a long uptrend, and at a prior resistance area, strongly implies that a change of trend may be at hand. That same bearish pattern forming as a stock gaps out of a basing or consolidation area on high volume now implys a potentially bullish situation.

I believe those wanting to take full advantage of candlestick patterns would be better served by reading the books of Steve Nison or Stephen W. Bigelow. Both authors offer PRACTICAL TRADING ADVICE illustrated with many charts showing the strengths and pitfalls of these patterns.

9 of 11 people found the following review helpful:

1.0 out of 5 stars Statistics can tell you something but..., November 16, 2008

By 

Jackal (New Hampshire) - See all my reviews
(TOP 1000 REVIEWER)   

Amazon Verified Purchase

This review is from: Encyclopedia of Candlestick Charts (Wiley Trading) (Hardcover)

Don't buy this book to learn about candlesticks. To learn buy Japanese Candlestick Charting Techniques, Second Edition.

I bought this book because I wanted to know some more about how successful the candlesticks patterns really are. Bulkowski has processed lots of data and he presents lots of (almost raw) data. Actually he presents too much and hardly any recommendations of how to use candles. But also too little data, for instance he doesn't use standard deviation at all. This would have been very useful to understand statistically significant patterns. The way he presents the statistics is also very convoluted, but at least a lot of data is there for you to do your own study of his data. For USD 100 I would have expected the author to provide a bit more commentary and advice. Instead he seems to collect candlepatterns like some people collect books (over 100 patterns); more is better. It would have been better to cut the pages with 50% and provided the additional data on his webpage.

I have written several short reviews on trading books. The best way is to compare the score on the books I've read. Many reviews on amazon.com are just glorious 5 star reviews. I use all five categories; sorry but everything isn't "great". Books rated 5 are very good. Books rated 4 are good solid books well worth reading. Books rated 3 can be bought by some people who read a lot or have very specific needs. Books rated 1 or 2 I would not recommend buying or reading. Naturally all in my humble opinion.

11 of 14 people found the following review helpful:

5.0 out of 5 stars An excellent guide, April 13, 2008

By 

Jimmy Ho (New Zealand) - See all my reviews
(REAL NAME)   

This review is from: Encyclopedia of Candlestick Charts (Wiley Trading) (Hardcover)

A statistically thorough analysis of candlestick charts. Who would have thought that a good number of formations described in Japanese literature as reversal patterns actually have the opposite effect, while many others have outcomes which are close to random? There are also a few formations with success rates of over 80%. Thomas does an excellent job here of sorting the chaff from the wheat. Excellent research with some surprising findings.