Kaizen Trading – Let Japanese Candlesticks colour your money

What are Japanese candlesticks?

Basically it is a graphical charting tool that helps a trader to quickly recognise patterns that foretell the future price actions. Initially used by the Japanese merchants to record and indicate prices of rice, a common staple or grain, in the 1600s and hence to make huge profits in such commodity trading.

It normally consists of 4 data, i.e. opening price, closing price, the highest and lowest price for the day. It does not use pay attention to the volume of shares traded. This candlestick name comes from the candle-like appearance when the box formed from the two horizontal lines of open and closing price. Then wicks are extended below the box for the lowest price and above for the high price of the day.

Kaizen trading

Kaizen trading - let Japanese candlesticks make money for you

It gives a highly visual form of stock price actions e.g. green if the closing price exceeds the opening price, and is red if the closing price falls below the open price. Hence when you see the chart and if you see a lot of red, it means blood is all over the place and prices are falling. Conversely if you see green, it’s the colour of money and hence uptrend is very easily seen!

Understanding basic candlestick shapes and its significance to predict bullish, bearing trends is essential towards successful stock trading. Numerous catchy and highly visual names are given to those shapes, for example, shooting star and hammers denotes trend reversal, bearish or bullish engulfing patterns, bearing dark cover and gaps denoting trending patterns. I suggest you can find easily explanatory notes on Japanese candlesticks on the internet and it would greatly help anyone who wants to trade profitably.

However I would not hesitate to recommend the works of Steve Nison, the man credited with popularizing Japanese Candlesticks to the Western world. He has written numerous books and toured Asia to promote his system. Just type “Japanese candlesticks + Nison” into Google and you will see what I mean. Or <click here to read his book>. I have seen Nison, with his pony-tailed hair and all, demonstrating his stock trading software during presentations. This man can, with one glance at a chart, start explaining with ease, how and why this stock price was trending up, stalling and then falling and each price action supported and validated by appearance of appropriate candlesticks symbols. This man oozed with passion, energy and commitment to Japanese candlestick trading techniques.

Japanese candlesticks can be used with other technical indicators such as oscillators, moving averages, MACD, but whatever it is, it is up to you to try and then decide what works for you. It is but one excellent way to simplify trading decisions and improve your profitability as well as improvement to your kaizen stock trading techniques.

Till then, Happy Trading

John Lee

This entry was posted in Trading books and tagged , . Bookmark the permalink.

212 Responses to Kaizen Trading – Let Japanese Candlesticks colour your money

  1. An attention-grabbing discussion is value comment. I think that it’s best to write more on this subject, it won’t be a taboo subject however typically individuals are not enough to talk on such topics. To the next. Cheers

  2. Nice information, many thanks to the author. It is incomprehensible to me now, but in general, the usefulness and significance is overwhelming. Thanks again for sharing this free online and good luck!

  3. kdla says:

    I like what you guys are up too. Such clever work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it will improve the value of my web site 🙂

  4. Hello, I phoned in sick from work today and am sitting at home searching the internet. I did enjoyed the points shared on this blog. God bless.

  5. I really like your writing style, great info , appreciate it for posting : D.

  6. recepti says:

    You made some good points there. I did a search on the topic and found most people will agree with your blog.

  7. I think this is among the most significant info for me. And i’m glad reading your article. But wanna remark on some general things, The website style is great, the articles is really great : D. Good job, cheers

  8. Seo tournament from Poland

  9. Rich says:

    Webmaster, I am the admin at SEOPlugins.org. We profile SEO Plugins for WordPress blogs for on-site and off-site SEO. I’d like to invite you to check out our recent profile for a pretty amazing plugin which can double or triple traffic for a Worpdress blog. You can delete this comment, I didn’t want to comment on your blog, just wanted to drop you a personal message. Thanks, Rich

  10. Rich says:

    Webmaster, I am the admin at SEOPlugins.org. We profile SEO Plugins for WordPress blogs for on-site and off-site SEO. I’d like to invite you to check out our recent profile for a pretty amazing plugin which can double or triple traffic for a Worpdress blog and we just posted a video showing the plugin in action. You can delete this comment, I didn’t want to comment on your blog, just wanted to drop you a personal message. Thanks, Rich

  11. This particular post, “Kaizen Trading – Let Japanese Candlestick colour
    your money | Successful Traders Secrets” ended up being excellent.
    I’m creating out a replicate to demonstrate to my associates.
    Thanks a lot,Josephine

  12. Pingback: kangen

Comments are closed.