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Description of The Secret Code of Japanese Candlesticks

"The Secret Code of Japanese candlesticks is not just another candlestick book Rather, if you want to know Honma′s Samni No Den of markets and the Sakata strategies for successful trading, then read this book. If you study the markets and implement the methods di9scussed here, you will profit from owning this book." – Thomas N. Bulkowski

"Felipe Tudela has provided an explanation and a meaning to Japanese candlestick chart analysis that heretofore has been lacking. This book is clear, concise and comprehensive. It is must reading for the beginner as well as the avid, experienced candlestick trader." – Tom DeMark

"Felipe Tudela′s latest book combines one of the hottest tools for today′s traders– Candlestick charting–with the time–tested strategies of Sokyu Honma′s. This groundbreaking book is well researched with plenty of illustrations of how to implement this simple, yet powerful trading strategy. The techniques described by Felipe will help traders overcome the need to use subjective lagging indicators to help confirm signals derived from Candlestick patterns, which can often prove to be challenging. Instead, they will learn to use the market′s own behavior to boost their trading performance. I highly recommend this book for any chartist. The cutting–edge techniques are right on the money!" – John Crane

Title Information

ISBN:

9780470996102

Pages:

212 pages

Format:

Hardback

Product Code:

254267

Publisher:

John Wiley & Sons Ltd

Published:

04/04/2008

Edition:

illustrated edition

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About Felipe Tudela

Felipe Tudela is president of the centre de Recherche Financiere and manages a limited partnership for a group of private investors. He has lectured in France and abroad for various financial institutions such as the Bank of France, the London Society of Technical Analysts, the FOW group and the French Association of Technical Analysis. He is a member of the board of AFATE(French Association of Technical Analysis) and creator of the triads, a market model that enables the user to analyse market behaviour without many of the inconveniences of normal distribution based indicators, thus avoiding many of their false signals. He is the author of Methode Triades, a book that explains this model, and which is used by leading financial institutions. His most recent discovery, and the subject of this book, is the original way to trade Japanese candlesticks and their use in conjunction with Sokyu Honma′s five Sakata methods. He currently trades the markets, writes, lectures and does research on technical analysis.

Contents of The Secret Code of Japanese Candlesticks

Acknowledgements
Introduction

1. The Truth About Japanese Candlesticks
- The Origin of Japanese Candlesticks Or How Knowledge Of Their History Could Turn You Into A Successful Trader
- Sokyu Honma's Method

2. The Spirit of Sokyu Honma's Method: The Master and The Disciple

3. The Samni No Den of The Market: The Subjective Part Of The Method
- How To Master Your Trading: Your First Step To Success
- Lets Examine This Simple And Powerful Method

4. The Five Sakata Methods: The Objective Part Of The Method
- Sakata's Five Methods and Their Corresponding Market Phases
- A Simple Permutation Uncovers Sokyu Honma's Great Market Cycle

5. Trading With Sokyu Honma's Method
- From The Five Market Phases to the Five Operational Methods
- Rules for Buying and Selling According To Each of the Five Methods
- Method for Selling Triple Tops (San Zan)
- Method for Buying Triple Bottoms (San Sen)
- Method for Buying or Selling Gaps (San Ku)
- Method for Buying or Selling Trends (San Pei)
- Method for Buying or Selling Corrections Within A Trend (San Poh)
- Examples

6. Japanese Candlesticks: A Precision Tool Within The Market's Great Cycle
- The Basic Candlestick Patterns
- Turning Point Patterns
- Continuation Patterns

7. Algorithm In Tabular Format For The 5 Sakata Methods Within Sokyu Honma's "Great Cycle"
- The Building Blocks of Our Algorithm
- The Key Candlestick Patterns: They Could Be All You Ever Need
- The San Zan Algorithm
- The San Sen Algorithm
- The San Ku Algorithm
- The San Pei Algorithm
- The San Poh Algorithm
- Why All This Works

8. 37 Applications Involving Indexes, Stocks and Futures

9. Back To The Samni No Den
- The Samni No Den Has It All
- The Trader's Cycle And The Market Cycle
- What Most Traders Will Never Do: This Is Your Edge

10. Learning To Analyze the Markets from A Trader's Viewpoint
- Analyst or Trader?
- Learn To Select Your Market: This Is Your First Step
- Time Windows Do Matter!
- You Must Study Price
- You Must Study Time
- Turning Points and Oscillations
- The Two Approaches to Market Reading

11. Your Magic Talisman
- It's All About Misdirection
- General Conditions Rule
- Simplicity Is The Key
- Learn To Keep An Eye On Indexes
- Learn To Read Sector Behavior
- You Must Follow Individual Stocks
- You Should Know About Futures, Interest Rates And Currencies
- There Is No Rule: You Are Free and the Markets Too!

12. Before Taking A Position.Think!
- Strategic Thinking and Tactical Thinking
- General Conditions and Strategy
- Your Vehicle Selection
- Your Entry Point
- Your Exit Point
- Your Initial Position Sizing
- How To Scale Your Positions
- How To Add To Your Positions
- Your Asset Allocation
- Your Stock Allocation: To Diversify Or Not
- Selecting A Stop

13. How To Exit A Trade
- A Very Important Decision: How To Exit Your Trade
- The Price Factor Closing Strategy
- The Time Factor Closing Strategy
- Exit Allocation

14. How to Manage Your Risk
- The Risk Is You!
- The Elements of Risk
- The Risk of Not Understanding Market Behavior
- The Risk of Not Having A Plan
- The Risk of Not Allocating Assets
- The Risk of Not Diversifying
- The Risk of Not Scaling Your Positions
- The Risk of Not Having a Stop
- The Risk of Not Following Your Rules
- Subjective and Objective Risk: The Secret That Sokyu Honma Knew
- Risk and Reward in Trade Selection: A New Perspective

15. All You'll Ever Need To Know About Stops
- The Superstitions About Stops
- What A Stop Is And Is Not
- How To Place A Stop That Is Almost Never Caught
- Price Stops
- Time Stops
- You Have The Last Word, But Be Careful!

16. Putting It All Together In A Simple, But Winning Approach
- Know Yourself
- Think Your Plan
- Have A Plan: Make It Complete
- Have A Plan: Make It Simple
- Have A Plan: Tactics First
- Now Build A Prototype!

17. Trade Now!
- Test Your Prototype
- Expand Your Trading
- The Time Has Arrived For All Those Trading Psychology Books

18. Some Thoughts About Trading Philosophy
- Trading Philosophy Is Not Trading Psychology
- Trading Philosophy Rules It All: It's The Unique Key To Trading Success
- The Three Levels of Trading: Traders' Market Knowledge, Traders' Psychology And Traders' Philosophy
- Samurai Traders Know That It's All About Wisdom
- Your Real Secret Edge!

Conclusion

Appendix: What Is A Candlestick?

Notes
Bibliography
Index