Google Finance        Yahoo Finance       CNNMoney       Wall Street Journal       MarketWatch       BBC Business News       IB Times       GlobeInvestor

TheStrategyLab.com Price Action Only Strategies

Price Action Trading (no indicators)

The McGraw-Hill Companies ($MHP) S&P 500 Emini ES ($ES_F) Forex Currency EurUsd Energy Select Sector SPDR ($XLE)
Stocks Futures Forex Currencies Exchange Traded Funds
 
 

Home      Performance Record      Trade Strategies      Support Forum      Copyright Protection      Sitemap

 

Did you know that a Japanese rice merchant trader name Munehisa Homma is the father of Japanese Candlestick Analysis?

 

Trading via Japanese Candlestick Analysis

click here to post questions

Japanese Candlestick Analysis original design was to help understand the price action that's often referred to as market context prior to the appearance of any trade signals. Simply, if you're going to properly use Japanese Candlestick Analysis...it was not designed to be a trade signal. Yet, traders today in the western hemisphere (e.g. United States and Canada) have been trying to use it as a trade signal method instead of as an analysis to understand the market context of the trading day. Therefore, there's a difference between analysis versus trade signal. The sooner you understand that difference, you'll be able to apply Japanese Candlestick Analysis as it was originally designed along with seeing its usefulness.

Therefore, to understand the price action (market context) that you're trading within, it's highly recommended that you download the free study guide WRB Analysis Tutorials @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=5&t=180 even though WRB Analysis has nothing to do with Japanese Candlestick Analysis. Yet, they work extremely well together to get that market context prior to the appearance of whatever trade signal strategies you're using.

Uses of Japanese Candlestick Analysis:

More Info about #FuturesTrades  Trader A identifies (understands) the price action via WRB Analysis Tutorials and/or Japanese Candlestick Analysis. Next, the trader then uses a different trade signal method to time entries and exits in that price action. Thus, trade signal method is not based upon Japanese Candlestick Patterns.

More Info about #FuturesTrades  Trader B identifies (understands) the price action via WRB Analysis Tutorials or any other analysis for market context and then times the entries and exits into that price action via Japanese Candlestick Patterns.

More Info about #FuturesTrades  Trader C identifies a bullish candlestick pattern and concludes the price action must be bullish. This is not the proper approach to using Japanese Candlestick Analysis but it is marketed and promoted as such in the western hemisphere (e.g United States and Canada) via books and online forum discussions. 

Results: Statistically...using Japanese Candlestick Analysis as a tool in your trading plan will be more profitable, more reliable for trader A and trader B in comparison to trader C. Simply, trader A and trader B understands the price action (market context) prior to the appearance of any trade signals regardless if the trader is using price action only or indicators. 

With that said, listed below are other resources outside of TheStrategyLab.com that will help improve your understanding of Japanese Candlestick Analysis and you can determine if you want to be trader A, trader B or trader C as explained above. Yet, regardless if you're going to use it an analysis or trade signal...we provide the best support for using Japanese Candlesticks Analysis or Patterns. Therefore, to get you started, here's a list of resources we're recommending. 

TheStrategyLab.com:

Bearish Engulfing

Bullish Engulfing

Bullish Harami

Advance Japanese Candlestick Trading Report (AJCTR)

Free E-Articles:

Japanese Candlestick Patterns Create Beautiful Pictures

Japanese Candlesticks Can Predict Reversal of Major Trend

Japanese Candlesticks Books:

Candlestick Charting Explained

Japanese Candlestick Charting Techniques

Beyond Candlesticks

Encyclopedia and Dictionary:

Candlestick Pattern Dictionary

Encyclopedia of Candlestick Charts

Unfortunately, most traders using these free resources (online articles, forum discussions, magazine articles, online videos, library books et cetera) are the self-taught types along with having the belief in error that these free resources are providing a complete trading plan.

Simply, most traders are not profitable when using Japanese Candlesticks as their primary methodology or as a confirmation strategy that confirms their primary method mainly due to using information that was primarily design to only provide dictionary terms of patterns with chart examples.

In contrast, we do provide a complete trading plan (pattern rules, entry rules, stop/loss management, trailing stop management, profit targets, contingency plan and private member forum so clients can learn from each other) of custom Japanese Candlestick patterns that removes the subjectivity so that you can exploit changes in supply/demand, volatility along with being able to merge our strategies with other strategies you may be using regardless if your a price action only trader or a trader that's dependent upon indicators. 

Also, our trade management rules for these patterns can be profitably applied to any free resource or books you have access too about Japanese Candlesticks along with giving you the ability to design your own custom Japanese Candlestick patterns that fit your own personal trading style.

Further, if the self-taught route of Japanese Candlestick pattern recognition isn't profitable for you, we highly recommend our resources to help you traverse to a road of a more comprehensive understanding of Japanese Candlestick analysis along with improving their profit level in comparison to your trading before using our resources.

In addition, you'll get the big piece of the puzzle to profitably trading via Japanese Candlestick analysis via purchasing our Advance Japanese Candlestick Trading Report (AJCTR) strategies along with being able to converse with other fee-base clients that have stronger understanding of the price action involving candlestick pattern recognition via a private forum for members only.

There's more information about our custom Japanese Candlestick patterns at the below link...

http://www.thestrategylab.com/AdvanceJapaneseCandlestickTrading.htm

Last of all, contact us, if you want to improve your understanding or trading of the Bullish Engulfing (what works and what does not work ) via any of the following trading instruments that we trade or watch closely for our intermarket analysis to help develop that market context prior to the appearance of any Japanese Candlestick pattern:

  CME Emini Futures EMD, ES and NQ 

  ICE Emini TF Futures (formerly CME ER2)

  CBOT mini-sized Dow Futures YM

  Eurex Index Derivatives (futures) DAX and DJ Euro Stoxx50

  Eurex Fixed Income Derivatives (futures) BUND, BOBL and Schatz

  Euronext Futures FTSE-100 and CAC-40

  CME Futures EuroFX 6E and EC

  Treasury Futures T-Notes ZT, ZN, ZF and T-Bonds ZB

  Forex Currencies GbpUsd, EurUsd, EurYen and UsdCdn

  Exchange Traded Funds BGU, FAS, FAZ, TNA, DIA, IWM, QQQQ, SPY, OIH, XLE, GLD and VXX   

  NYMEX Energy Futures Light Crude Oil CL, Brent Crude Oil BRN, e-miNY QM and Natural Gas NG

  COMEX Metal Futures Gold GC, mini-Gold YG, Copper HG and Silver SI

  S&P CNX NIFTY

  Hang Seng Index Futures HSI and mini-Hang Seng MHI

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis or wide range bar analysis)
Price Action Only Trading (no technical indicators)  
Twitter @ wrbtrader@ http://twitter.com/wrbtrader/

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com

"Once a trend starts, the odds are that it will continue. Every student of science or engineering will recognize that this is nothing more than Newton's First Law of Motion, which says, Every body continues in a state of rest or of uniform motion in a straight line unless it is compelled to change that state by forces applied to it. Simply said, it is easier for a market to continue its direction than to reverse its direction." --Gregory L. Morris

Amazon Computers & Accessories for Traders

Go HereMore Testimonials

 
  YM, Tbonds, FDAX and ER2 Testimonial"I tested it on YM, Tbonds, FDAX, ER2. It's reliable on what I trade and I will be purchasing your swing trading report soon."   Trader Recommendation"In all fairness...I give credit to these results to Niha and what I have learned from him."   Trader Recommendation"Your material is exceptional, its REVOLUTIONARY, seriously."  
 

Read Entire Testiomonial read entire context

 

Read Entire Testiomonial read entire context

 

Read Entire Testiomonial read entire context

 
 

Volatility          Supply Demand          Support Resistance          Scalping          Day Trading          Swing Trading          Position Trading          GAP Trading

 
Bloomberg Market News

click to watch

 Bloomberg Market News TV

German DAX
German DAX Index
 
Dow Jones Industrial Average
Dow Jones Industrial Average Index
France CAC 40
France CAC 40
 
S&P 500
S&P 500 Index
UK FTSE 100
UK FTSE 100
 
Nasdaq 100
Nasdaq 100 Index
 

DAX   FTSE100   CAC40   EuroFX   EC   HSI   MHI   NIFTY   EMD   TF   ES   NQ   YM  

 

Resources Used by TheStrategyLab.com

 

Market News

Blogs

Twitter

Miscellaneous

 
 
CNNMoney.com Business News Network
Wall Street Journal Globe Investor
MarketWatch Forbes
BBC Business News Fox Business
Financial Times Youtube Bloomberg
Bloomberg IB Times Global Markets
CNBC Market News  
   
   
Daily Finance Planet Money
Traderfeed  
ES EC Futures  
BloggingStocks  
Carl Futia  
xTrends  
   
   
   
Twitter Chart.ly
  TweetDeck
  StockTwits
  ReTweet
  Twitgraph
  GroupTweet
   
   
   
Time Dshort
Fidweek Econoday Economist
FED Calendar Financial Sense
Index Universe  
Wikipedia  
Forex Calendar  
   
   
   
 

 

VXX   QQQ   SPY   IWM   DIA   CL   QM   Brent   OIH   XLE   GC   GLD   ZN   ZB   ZF   BUND   EurUsd   UsdCdn

 

TheStrategyLab.com

  Website Use Policies Fee-Based Strategies Performance Records Affiliations and Sponsor
  Disclaimer Applicable Trading Instruments M.A. Perry Performance Traders Library
  Privacy WRB Analysis Tutorials (Premium) Recent Trade History Traders Invest-Store
  Anti-Spam Policy Volatility Trading Report (VTR) Trading Record Archives Amazon
  Copyright Protection Swing Trading Report (STR)   Systweak
  Refund Policy Advance Price Action Only Report (APAOR)   Slysoft
  Referral Program Advance Japanese Candlestick Trading Report (AJCTR)   PayPal
    Product Comparison    
    Mentorship Program    
    Discount Promotions    
         
  Who We Are & Contact Free Resources Miscellaneous Resources  
  About Us TSL Support Forum Forum List  
  Twitter @wrbtrader WRB Analysis Tutorial Chapters 1, 2 and 3 Sitemap  
  Stocktwits @wrbtrader #TheStrategyLab Chat Room    
  delicious bookmarks Blogs    
  Youtube Favorite Music Twitters    
  TSL Support Forum Profile Japanese Candlestick Analysis and Patterns    
  EliteTrader Profile Trading Tips    
  Traderslaboratory Profile Trader Consultation    
  Frequently Asked Questions      
  Accolades (Testimonials)      
  Contact      
  Feedback      
         

 

Return to Top

 

anti-spam policy

Copyright © 2002 - 2012. The Strategy Lab. All rights reserved.