Charting Techniques

compound stock earnings

As such, Advanced Charting techniques are not indispensable to the CSE covered call/LEAPS/credit spread investor, yet they result in increasing efficiency and returns. For those experienced with our CSE techniques, this knowledge is significant, as marginal increases in monthly returns lead to a dramatically higher compounding of an account over the long term. Advanced Charting techniques have historically not been a part of the Compound Stock Earnings method. Rather, the focus of the CSE method has been to understand simple bias in stock price direction and to act accordingly. To understand bias, we assess the stock’s price cycle and the position of the stock within that cycle.

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An Overview of Bitcoin Investment and Trading –

An Overview of Bitcoin Investment and Trading.

Posted: Wed, 01 Mar 2023 11:13:14 GMT [source]

I don’t know what this book was like when it was first written, I can’t imagine that it was really all that mind blowing, except that it maybe gave Western traders very colorful names for different types of price action. The most valuable thing about these colorful names is it kind of helps explain or give a metaphor to what could be happening on a particular candle/bar or group of candles/bars. The two biggest advantages of using Point & Figure charts is that they can quickly identify long-term trends and that they have an objective, rules-based methodology.

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Why is advanced charting different than all other charting programs? The final version of 20 proprietary indicators have been redefined and reformulated after hundreds of tests. Every day is a new trading day that depends on the emotions of the marketplace. My indicators are designed to either agree or disagree with each other. There are many subtleties to learn to understand the various degrees of agreement.


Thus the low p is more reliable, as there is no loss of reaction to out‐of‐control situations, yet less over‐reaction to very short runs of defectives.® is a property of Stock-Trak, Inc., the leading provider of educational budgeting and stock market simulations for the K12, university, and corporate education markets. All information is provided on an «as-is» basis for informational purposes only, and is not intended for actual trading purposes or market advice. Quote data is delayed at least 15 minutes and is provided by XIGNITE and QuoteMedia. Neither Stock-Trak nor any of its independent data providers are liable for incomplete information, delays, or any actions taken in reliance on information contained herein. By accessing the How The Market Works site, you agree not to redistribute the information found within and you agree to the Privacy Policy and Terms & Conditions.

Candlestick Trading Strategies – Binary Options Trading Signals

I receive numerous e-mails from traders who have mastered it and are now able to generate cash every day that they trade. They are lagging because the data are based on past history over a set number of periods or days. Regardless of this, MA settings are very important in terms of validating the V. The position of the MAs determines 90 percent of what we do when trading covered calls and LEAPS following the Compound Stock Earnings methodology.

  • Note all of the arrows indicating a flat to slightly up or down M1.
  • These include white papers, government data, original reporting, and interviews with industry experts.
  • Have a firm grasp on the logic behind the Bollinger bands and how to trade them with candles.
  • There are a few small editing errors in the book, however I only mention this so readers can re-read something that may not quite make sense, and of course to demonstrate that I have actually read the whole book.

Note all of the arrows indicating a flat to slightly up or down M1. A slightly up or slightly down M1 is basically the same as a true flat or horizontal M1. While this book was one of the most boring books I have ever read, taking me over 2 months to finish it has such great information. I have decided to dedicate even more time to memorizing the fundamental knowledge.

Continuation charts chain futures contracts according to the criteria you set. You can define the chaining behavior of both methods by right-clicking on a chart and choosing Properties… Click the Continuations tab and modify either one or both of the continuation methods. Goodreads is the world’s largest site for readers with over 50 million reviews.

Technical analysis charting techniques can be used in conjunction with fundamental analysis, which involves evaluating a security’s intrinsic value based on financial and economic factors. The reason simple charting methods can be used successfully with the CSE covered calls, LEAPS, and credit spread techniques is that the techniques are based on probability. In a speculative stock or options trade, if the speculator picks the direction of the stock incorrectly, a loss on the position will be realized. In the CSE covered call methodology, if the assumed bias is incorrect, a loss is not generated. Rather, another management technique can be used to provide a solution. This is an important distinction between speculative trading and the CSE covered call/LEAPS techniques.

This is your bible for candle stick charting, no question about it. For any technical analysts out there, there is no excuse to not have this read and finished. My guess is that will be a very disappointing endeavor. Swing trading is a style of trading that attempts to capture gains in a security over a period of a few days to several weeks based on changes in momentum. The quickest way to create a multiple instrument chart is to click the Add Instrument icon in the tool bar. Then type the instrument you want to add and press Enter.

The Business of Venture Capital: The Art of Raising a Fund, Structuring Investments, Portfolio Management, and Exits

Its fascinating how such a simple tool, that essential shows the psychology of supply and demand, hasn’t changed over hundreds of years, because people’s psychology hasn’t changed. And that’s what moves stock prices in the short to medium term, people’s psychology. Eventually fundamentals will shape the life of the stock, but even those will make themselves apparent in the candles on longer timeframes. About the author STEVE NISON, CMT, is founder and President of Nison Research International Inc., which provides customized educational and technical advisory services. Mr. Nison, the first to reveal candle charts to the Western world, is the acknowledged authority on Japanese charting techniques as applied to Western markets.

4 Charts That Could Be Key To Where Trading-Range Market Goes – Seeking Alpha

4 Charts That Could Be Key To Where Trading-Range Market Goes.

Posted: Wed, 14 Dec 2022 08:00:00 GMT [source] analysis charting techniques are methods for analyzing and interpreting price data using charts and other graphical representations. These techniques can be used to identify trends, set entry and exit points for trades, and manage risk in a portfolio. Some common technical analysis charting techniques include the use of moving averages, trendlines, and chart patterns. Its one of the key building blocks, in my opinion, of understanding the movement of a market, whether its a stock, bond, option, future, credit swap, crypto, commodity, it doesn’t matter. To me, candlesticks are kind of like the «atoms» of market interactions. There’s obvoiusly more to a stock than candles, just like there’s more to water than undestanding its molecules, there’s physics too and an external envrionment, but the comparison holds true.

It is so straightforward, even someone like Burton G. Malkiel and other Random Walkers could use it to improve their results. Except for the weekend close, the opening and closing periods in forex are basically arbitrary. They retain their force, I believe, because every broker uses the same break points, at least for any chart that tracks an hour or less. The weekly and monthly charts are also the same for all traders. There is some slight variation for Daily and four hour charts, depending on the broker’s time zones, but these provide only slight variations for the most part. Thus, candlestick charts work because traders all rely on the same data for the fictional opening and closing points of the bars of their charts.


When a stock is high in its current cycle, the bias is down. When a stock is low in the current cycle, the bias is up. To understand this bias, a simple straight-line, or open-high-low-close chart is used.

Our community of 7,000+ authors has personally recommended10 books like Japanese Candlestick Charting Techniques. Get Mark Richards’s Software Architecture Patterns ebook to better understand how to design components—and how they should interact. This book has tons of pictures so you have to physically read it. Regardless, because of the books content I can’t give it anything else than a 5 star review from me.

What changes is when to execute those rules and management techniques on a particular position based on these advanced charting techniques. At first I thought this book was boring and, plainly, unhelpful. The idea of japanese candlestick has become standard in most trading softwares and their analysis almost as standard to traders. The first half of the book talks precisely about this, and it gets boring and repetitive very quick. These platforms and software packages typically offer a range of technical analysis tools, including the ability to identify chart patterns.

Charting Techniques

Speculators have developed technical charting indicators due to the critical need to be correct in picking the direction of a stock—picking the stock price direction correctly is the only way speculators can profit from a trade. While that critical need is not present when using the CSE trading methods, increased accuracy in understanding bias leads to an increase in efficiency and returns when using the CSE techniques. Japanese Candlestick Charting Techniques is the most comprehensive and trusted guide to this essential technique.

Now, with this groundbreaking new book, the «Father of Candlesticks» further revolutionizes technical analysis with an entire collection of stunningly effective Japanese techniques. Trends in technical analysis refer to the general direction in which the price of a security is moving. Identifying trends and trend reversals can be useful for establishing a trading strategy and for identifying potential buying or selling opportunities. Reading this book has certainly taken my understanding and appreciation of candlestick charting to new levels. Most technical traders have probably seen a bar chart, as it is the most common type of chart.

By contrast, an Equal Tick bar consists of a fixed number of ticks . For example, a fifteen tick Equal Tick bar consists of fifteen ticks, and after every fifteen ticks, a new bar is created. (The final bar of the day may consist of one to fifteen ticks.) Naturally, sparsely traded instruments render different time scales than heavily traded instruments, but in either case, a time scale is present. Whether you trade futures, commodities, or equities, day trade or hold positions overnight, this book is a must. –Lee Siegfried Investor’s Library, Data Broadcasting Corp.

The Dow Theory states that the market is trending upward if one of its averages advances and is accompanied by a similar advance in the other average. Gordon Scott has been an active investor and technical analyst or 20+ years. Have you ever tried to diversify a securities portfolio and wondered whether two securities trade together?

price data

In fact, the chart is the most common technique used to identify trends. Ever wondered about what those Japanese candlesticks on a chart are and what stories they tell? Do you have the feeling that if you could learn to decipher them, your trading would improve by leaps and bounds?