Charting With Candles and Clouds
Ten years ago when I joined a Japanese bank as an experienced technical analyst, I arrived armed with my bar charts, now conveniently drawn by computers and displayed on computer screens. The traders there asked me why I did not use candle charts, a tool they considered much more effective. An English dealer kindly lent me his copy of Steve Nison’s Beyond Candlesticks (Wiley & Sons, 1994). I read it surreptitiously, at home, and discovered what the more enlightened British, European, and U.S. chartists had already seen. Bars and candles are actually one and the same; what varies slightly is the display format. Candles are clear, easy, and above all fast. This is precisely what makes ...