Contents

Preface

Foreword

Introduction

1. What Are Candlesticks?

A potted history

Construction of candlestick charts

The psychology of charts and trading

Chapter summary

2. What Candles Tell Us about the Market's State of Mind

Marabuzo versus Doji candles

Chapter summary

3. Single Reversal Patterns

An in depth look at the hammer to see why this is a reversal signal, and such a strong one!

More single candle patterns Shooting Star, Hanging Man, Inverted Hammer

Hanging Man

Different types of Doji Gravestones, Dragonflies, and the Rickshaw Man

The importance of volume for confirming candlesticks and why candlesticks work whatever the market, whatever the time frame

Chapter summary

4. Multiple Reversal Patterns

Engulfing patterns

Bearish Engulfing Pattern

Bullish Engulfing Pattern

Dark Cloud Cover 1

Piercing Pattern

Bullish Harami

Bearish Harami

Bearish Star

Bullish Star

Evening Star

Morning Star

Marabuzo lines summary

5. Continuation Patterns

Rising / Falling Three Method and gaps

Gaps (or windows, to use the candlestick parlance)

Chapter summary

6. The Real World Practical Application

Different time frames

Using candlesticks in conjunction with support and resistance

Combining candles with momentum studies

Chapter summary

7. Summing Up

8. Ten Golden Rules When Trading Using Candlesticks

Index