Getting Started in Candlestick Charting by Tina Logan is a comprehensive introduction to one of the most widely used methods in the trading world. This book aims to provide beginners with a solid foundation in understanding and applying the principles of candlestick charting in their trading strategies.
The book starts by offering a historical perspective on candlestick charting, explaining its origins in 17th-century Japanese rice markets, and traces its evolution and adoption in modern-day trading. Logan then delves into the fundamentals of candlestick charting, including the construction of candlestick charts and the interpretation of various candlestick patterns.
One of the standout features of “Getting Started in Candlestick Charting” is its thorough exploration of numerous candlestick patterns. Logan meticulously explains common patterns such as dojis, hammers, shooting stars, and engulfing patterns, along with their bullish or bearish implications. She provides clear illustrations and real-world examples, making it easy for readers to identify these patterns in actual trading situations.
Logan also discusses the integration of candlestick charting with other forms of technical analysis, such as trendlines, resistance and support levels, moving averages, and technical indicators like RSI and MACD. She demonstrates how combining these techniques can provide a more robust and accurate analysis of market conditions.
An essential aspect covered in the book is the psychological interpretation of candlestick patterns. Logan explains how these patterns often reflect the market sentiment and traders’ emotional responses, providing valuable insights into potential market reversals or continuations.
In addition to teaching the principles of candlestick charting, Logan provides practical tips and strategies for trading with candlesticks. She discusses risk management and the importance of having a disciplined trading plan.
In summary, “Getting Started in Candlestick Charting” is a valuable resource for anyone interested in technical analysis and forex trading. Its detailed explanations, coupled with illustrative examples, make it a perfect book for novice traders looking to understand and effectively apply candlestick charting in their trading practices. The book’s accessible writing style also ensures that more experienced traders can use it as a handy reference guide.