Archive for September, 2004
Candlesticks Candle
Like traders everywhere, one particular rice trader in Japan centuries ago was always searching for an “edge” in his analysis of the market. He developed a system of price recordation which, in his view, captured the essence of the psychology of the traders with whom he was doing business. Rather than recording prices in a simple manner which only revealed the opening price, the closing price, the high, and the low of rice prices during a particular trading session, his system showed all of that, to be sure, and more. Specifically, rather than using a simple line drawing, he “fattened out” the line into a cylinder, which he either colored in, or not, depending on the movement of prices during that session. Simply put, if he left the cylinder unfilled, that meant that prices ended up higher that day; if he filled in the cylinder, that inferred that prices declined. He felt that by this device he could tell, and could record, the overall psychology of the market.
In the United States, and elsewhere in the West, this system of price recordation has become known – not surprisingly – as “Japanese Candlesticks.” Their use here began about 25 years ago, and is now spreading widely. The system is simple and quick to learn. It’s necessary to memorize only about a dozen of the major candle patterns. Investors who have taken the time and trouble to learn the candles aver that they would never go back to the old system, because in fact the candle patterns do reveal so much of the psychology of the market participants. The beauty of the candles is that they can be used with equal result in any financial market and in all time frames. They are especially adept at foretelling reversals of trend. They accurately predicted the top of the market in year 2000 and the beginning of the recovery in 2002-2003. Further, they spotted the top of the market in October 2007, which appears now to have been a major turning point, following which we can expect a long decline which will retrace all of the market gains since 1995.
Purely as a defensive measure if nothing else, every investor should take the time and the minimal effort which is required to learn the basics of Japanese Candlesticks price presentation. Informational materials are widely available, both in printed form and in DVD form. Skilled practitioners also make a business of conducting seminars on the subject, both in person and via the Web.
About the Author:
Author (as CandleWave, LLC) publishes investment advisory newsletter at http://www.candlewave.com/ Passed NASD Series 65 Investment Adviser exam. Creator of “Candelaabra” technical analysis system. Ret. atty and corporate EVP.
Article Source: ArticlesBase.com – Are Japanese Candlesticks Just Another Passing Fad?
|
|
Cream teapot, pillow and candlestick/candle by lot $26.95 |
|
|
Japanese Candle Sticks Holder Set stand red wax Japan $19.99 |
|
|
STERLING SILVER CANDLE HOLDER Candlesticks Candelabra $199.00 |
|
|
AVON 1876 CAPE COD RUBy RED CANDLE STICK HOLDERS $19.99 |
|
|
Pr Antique Bronze Floral Lion Candelabra Candle Sticks $19.63 |
|
|
Haeger Pottery Barn Red Candle Stick – Vintage 3074 USA $10.99 |
|
|
VINTAGE PR. FLORAL MILKGLASS CANDLE STICKS/HOLDERS $9.06 |
|
|
Blomus Velo Candlestick With Candle Size: 7.9″ H $24.38 |
|
|
PAIR OF BRASS CANDLESTICKS AND CANDLES 7 INCHES TALL $6.00 |
|
|
Vintage,Petit Point& Brass Candle Sticks-Dressing Table $19.59 |
|
|
Pair Silver Taper Candle sticks Corinthian Column 1902 $306.48 |
|
|
bezalel stile silver shabat candle stick filigree $175.00 |
|
|
Antique Wood Candlestick Candle Stick Holder $25.99 |
|
|
Bowl and Candle Sticks $10.00 |
|
|
Japanese Candle Stick 2P Set violet wax handmade Japan $19.99 |
|
|
Brass candlestick holders w candle drip base $7.99 |
|
|
2 Vtg Anchor Hocking Boopy Glass Candle Stick Holders $13.49 |
|
|
Flat Rate Box Of Brass~Bookends~Deer~Candle Sticks~Plus $5.20 |
|
|
Pair cobalt blue Bud Vases and Pair Candle Sticks 4 $24.00 |
|
|
Candle Stick Copper Partylite 6 1/4″ High 5″ Diameter $9.99 |
|
|
HenRiot Quimper France Faience Candle Stick with Breton $275.00 |
|
|
Nambe Lot! Bowl, Vase, Candlesticks + Candles $124.99 |
|
|
Beautiful Vintage Vienna Woods Fine China Candle Stick $29.95 |
|
|
avon silvertone cologne candle stick holder $0.99 |
|
|
CRYSTAL HURRICANE CANDLE STICK $10.00 |
|
|
Very Tall Crystal Candle Stick Holder W/Gold Accents $5.25 |
|
|
Hand Blown Pink Art Glass Large Candle Stick $15.99 |
|
|
BEAUTIFUL SOLID BRASS CANDLESTICKS ALTAR CANDLE HOLDERS $34.99 |
|
|
Brass antique candlestick holder with 2 large candles $9.99 |
|
|
Blomus Velo Large Candlestick with Candle Height: 15.7″ $62.18 |
|
|
Sterling Silver 925 Candle Sticks Pair #393 $72.00 |
|
|
ART GLASS HAND PAINTED BIRDS CANDLE STICK PARAKEETS $24.99 |
|
|
Imperial Style Candlelabra Candlestick / Candle Holder. $59.90 |
|
|
Waterford Crystal Marquis 41/4″ Candle Stick Holders $29.99 |
|
|
ANTIQUE BRASS CANDLESTICK FIGURAL BRONZE JOKER CANDLE $125.00 |