Message Font: Serif | Sans-Serif
No. of Recommendations: 3

Dear Candlestick People (all 3 of us):
I just received my very own copy of Japanese Candlestick Charting Techniques: Second Edition by Steve Nison this weekend. I highly recommend it. I recommend it SO much that I believe you should throw out your copy of Candlestick Trading by Steve BIGALOW (that's if you have a copy). In my opinion, Bigalow's explanation of candlesticks are incomplete. I feel like he read Nison's book and simply abridged the concepts.
As you know, I have been posting candlestick readings with crappy results. I strongly believe that this was due to the incomplete writings of Bigalow. For example, Bigalow lists the major patterns with brief explanations. In doing so, he fails to stress important aspects of a pattern. A hammer for instance, is a useless symbol unless it is reinforced by a secondary symbol. In addition, a hammer with windows can mean something completely different. What I like about Nison's book is how he refers back to previously taught symbols. In addition, he explains how some symbols are more significant than others and how patterns can be negated by other patterns.
Conceptually, Nison differs from Bigalow because he stresses the overall picture rather than the specific patterns. Nison fully illustrates how some candlesticks may not fit a pattern EXACTLY, but how they can still be useful in determining trends. He likes using examples and he sometimes points out patterns that may be mistaken as a pattern, but he explains why they are not. THOROUGH THOROUGH THOROUGH.
I only have one minor complaint about this book. Throughout the book, especially in the beginning, he will make reference to symbols he had not yet explained. He usually says that he will explain it in future chapters, but it could be a pain. For instance, he will point out DOJIs but the chapter on DOJI's is 5 chapters later. I say, "Bare with it". If you already have some experience with candlesticks, it won't be that much of a problem. If you don't have experience, stick with it because the thorough explanations are worth the minor setback.


P.S. I suppose you can keep your old Bigalow book for a quick listing of patterns, but I personally think the complete version is safer/better.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.