The candlestick trading bible

9
THE CANDLESTICK TRADING BIBLE 
London for Sumitomo, began using candlesticks in his daily work, and 
started introducing the ideas to London professionals.
In the December 1989 edition of Futures magazine Steve Nison, who 
was a technical analyst at Merrill Lynch in New York, produced a paper 
that showed a series of candlestick reversal patterns and explained 
their predictive powers.
He went on to write a book on the subject, and a fine book it is too. 
Thank you Messrs Feeny and Nison. 
Since then candlesticks have gained in popularity by the year, and 
these days they seem to be the standard template that most analysts 
work from. 
Why candlesticks are important to your trading analysis? 
-Candlesticks are important to you trading analysis because, it is 
considered as a visual representation of what is going on in the market.
By looking at a candlestick, we can get valuable information about the 
open, high, low and the close of price, which will give us an idea about 
the price movement. 
-Candlesticks are flexible, they can be used alone or in combination 
with technical analysis tools such as the moving averages, and 
momentum oscillators, they can be used also with methods such the 
Dow Theory or the Eliot wave theory.
I personally use candlesticks with support and resistance, trend lines, 
and other technical tools that you will discover in the next chapters. 
-The human behavior in relation to money is always dominated by 
fear; greed, and hope, candlestick analysis will help us understand 
these changing psychological factors by showing us how buyers and 
sellers interact with each other’s. 
-Candlesticks provide more valuable information than bar charts, using 
them is a win-win situation, because you can get all the trading signals 

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