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Beyond Candlesticks - Book Review

Beyond Candlesticks: New Japanese Charting Techniques Revealed is a book by Steve Nison, an expert on Japanese charting techniques.

The book was first published in 1994 and has since become a classic in the field of technical analysis. Beyond Candlesticks, provides a comprehensive overview of the use of candlestick charts. But as the title suggests, it also looks into other unconventional chart types.

These include, Renko, 3-line break, Kagi, Point and Figure charting techniques. It also covers technical analysis and introduces new and advanced techniques to improve the analysis of market trends and predict future market movements. It makes for a must read, if you prefer trading with unconventional charts.

The book starts by explaining the origins of candlestick charts in Japan and how they were introduced to the Western world. This is a throwback to Nison’s original book, Japanese Candlestick Charting Techniques. Nison explains how candlestick charts provide a wealth of information not easily captured by traditional bar charts.

Beyond Candlesticks Summary

Beyond Candlesticks, by Steve Nison
Beyond Candlesticks, by Steve Nison

The book then describes the various components of a candlestick chart and how to read them to gain insight into market trends. Nison explains the different types of candles and their meanings, including bullish and bearish patterns as well as reversal and continuation patterns.

He provides an in-depth analysis of each of these patterns, including how they form, how to interpret them, and the possible significance of the candlesticks and their patterns.

In addition to the standard candlestick patterns, Nison introduces several new and advanced techniques for analyzing market trends. One of these techniques is the use of gaps, which are spaces between the current and previous candle that can provide important information about market trends.

He also discusses the use of doji candles, which are candles with the same opening and closing price, and how they can indicate potential reversals in market trends. Chapter 7 is where Nison talks about the Renko charts, that may be of interest to the readers. The book is littered with some of the most interesting quotes about trading and other concepts of trading.

These one line quotes, although short pack of a lot of punch and meaning to it. At the end of each chapter, traders also have a practice sheet to plot the Renko charts by hand. Although this is not needed in today’s day and time, it still makes for a fun practical workshop. Understanding of how Renko charts are constructed can help you regardless of using an automated renko charting software or not.

Other charting techniques

Another technique the book talks about, is the use of multiple candles to form patterns and identify trends. Nison explains how to use multiple candles to create patterns. He also covers non-time charts such as the three line break, kagi, and point and figure charts. These advanced techniques provide a more comprehensive view of market trends and can help traders make more informed decisions.

The book also includes a section on integrating candlestick charting with other technical analysis tools, such as moving averages, trend lines, and volume analysis. Nison explains how these tools can be used in conjunction with candlesticks to provide a more complete picture of market trends and help traders make more informed decisions.

Finally, the book concludes with a section on risk management and trading strategies. Nison provides practical advice on how to manage risk, including using stop-loss orders, position sizing, and diversifying a portfolio. He also provides several trading strategies based on candlestick charting and other technical analysis tools. You can purchase a hard copy of the book for $69 from Amazon.

About Steve Nison

Steve Nison is a renowned financial market expert, best known for his expertise in Japanese charting techniques. He is widely recognized as the “father of candlesticks” and is considered one of the world’s leading authorities on the use of candlestick charts in technical analysis. Nison has written several books on the subject, including the classic “Beyond Candlesticks: New Japanese Charting Techniques Revealed,” which has become a staple of technical analysis literature.

Nison was born in New York City in 1956 and began his career in finance in the early 1980s. He learned about Japanese charting techniques in 1989 when a friend showed him some Japanese financial charts that used candlestick patterns. He was immediately fascinated by these charts and the information they present. As a result, he began studying the subject in depth. Nison’s research led to the publication of his first book, “Japanese Candlestick Charting Techniques,” in 1991, which introduced the concept of candlesticks to the Western world.

Since then, Nison has established himself as one of the world’s leading authorities on the use of candlesticks in technical analysis. He has written several books on the subject and has been featured in numerous financial publications, including the Wall Street Journal and Barrons. Nison is also a sought-after speaker, regularly giving presentations and workshops on the use of candlesticks and other technical analysis tools.

Nison’s career as a trader

In addition to being an author and speaker, Nison is also an active trader. He also has several successful investment ventures in his kitty. A firm believer in the power of technical analysis, Nison’s work is instrumental in popularizing the use of candlestick charts.  Other Japanese charting techniques are also now widely popular, thanks to his work.

Throughout his career, Nison has been committed to advancing the field of technical analysis. Nison made considerable contributions to the study of candlesticks. This proved to be pivotal in providing traders and investors with greater insights, navigating the financial markets. Nison’s expertise makes him distinguished as one of the foremost authorities in the field. He is highly acclaimed as one of the most versatile and knowledgeable technical analysts in the world.

In summary, Steve Nison is a financial market expert, author, and speaker. He has a passion for advancing the field of technical analysis. “Ffather of candlesticks,” is how many refer to Nison, given his contribution to the field of technical anlaysis.

Worldwide, Nison is synonymous as a leading authority on the use of Japanese charting techniques in financial analysis. Nison’s contributions to the field have been significant, with his work helping traders and investors to make informed decisions. Nison is a true pioneer in the field of technical analysis with his work continuing to inspire and influence traders and investors around the world.

Beyond Candlesticks – Book Review Conclusion

We recommend Beyond Candlesticks to anyone interested in technical analysis and the use of renko charts. The book provides a comprehensive overview of the use of candlesticks to the reader. It also introduces new and advanced techniques for analyzing market trends. Whether you are a beginner or an experienced trader, Beyond Candlesticks is a book, suitable for reading at all levels. The book provides valuable insights and practical advice that can help you make more informed decisions in the financial markets.

Steve Nison’s Beyond Candlesticks book serves as an inspiration for this website. And as you can imagine, it forms the basis for the renkotraders.com website.

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