Candlestick Patterns: Turning Investor Sentiment into High Profits

High Profit Candlestick Patterns
Turning Investor Sentiment into
Profits
By Stephen W. Bigalow

(from www.mo4forex.com) I’d like to make this post as a reminder to buy this book in the coming weeks, it comes highly recommended by a few trading experts I’ve come across along the way. I learned to never really trust alot of Amazon reviews, simply because (facts aside) reading is a very subjective activity, much like film, or politics, so where one sees a crappy book, I might see something I didn’t know before.

I’ve read alot of the Japanese Candlestick pattern example sites and their take on the significance of each pattern and what it might do to the currency pairs in the Forex market. I’m wondering if this is enough by way of learning abou Candlestick patterns or is knowing the theory behind these patterns relevant to trading. I’ve heard some say ignore patterns because the price can go any which way, turning what you thought was a head and shoulders pattern (and you’ve positioned yourself accordingly) only to have the market go against you.

Below I have included two excperts from Amazon’s reviews, one is good and sounds honest from a trader who has reviewed multiple Forex books, and the other is a bad review from a first time reviewer. Use your own judgement on weighing the importance of these reviews

The ony downside to this Forex Book is it’s price, $90+ new, $60 used, so doing a little research is advisable before buying. Inevitably, if you know nothing about Forex and Candlestick Patterns, this book could be useful to you despite the price. But all 432 pages might take a while to read for me, even on weekends.

Good Review

Practical, yet somewhat naive, February 19, 2007

By	Y. Rhee (Philadelphia, PA) - See all my reviews

This book teaches you the best way to make money in the markets = confluence of levels combined with price action triggers. He teaches you almost everything on the market’s technical behavior.

The naive part is that he uses, in my humble opinion, old school indicators - like 50SMA and 200SMA. Also, he relies on stochastics as an oscillator to show him overbought and oversold conditions. Of course, I wish this were true but I think in today’s more volatile conditions - there should be more than that.

So what does there need to be? I don’t know, but let me tell you one important thing: Just because you see tons of charts on his book with stochastics on overbought and then prices immediately pulling back, don’t let that fool you into thinking that’s how the market is _always_ going to behave.

It’s an excellent primer because this is how discretionary traders should trade, simple yet effective, but sometimes I think it’s a bit too much on the simple side.

Bad Review

Be warned! You may get “burnt” with this book, January 14, 2006

These are not true candlestick strategies. The “Scoop” “j-Hook” and many other so called candlestick patterns are NOT true candlestick patterns. They have been made up. Remember all the candlestick patterns revealed by Nison (he is the acknowledged master of candlesticks and the very first to reveal them to the West)have been refined by over 100 years of use in Japan and then another 20 years by Nison. I have used Nisons books/DVDs etc and they work! And I have no intention of taking chances on j-hook,and other fake candlestick signals. Ask yourself this, do you want to put your trading trading capital on candlestick techniques honed and refined for over 120 years, or those made up over the last few years? I think the answer is obvious.