-Notes on Japanese Candle Drawing Technology
20 1 10728 Japanese candle drawing technology-a modern guide to ancient oriental investment (USA) translated by steve nison/Ding Shengyuan.
20 1709 reading notes.
Introduction: This is an old book that has been on my shelf for six years. The pages of the book have turned yellow, and when they are opened, they have a peculiar smell of old books. I used to be an audiophile. I bought all the recommended books and put them on the shelf. I saw it once, at the beginning of the chapter, because it was too professional, too many charts and obscure language, and I gave up halfway. Now, I can calm down and study. Although it's still hard to chew, at least I won all these books I was afraid of. That's courage, right? (smiling face)
A summary of the basic contents of this book.
Brief introduction of the author and translator.
Japanese candle drawing technology is changing, but the author of this book, steve nison, is an American. He is the senior vice president of Dalva Securities Company in New York, USA, the first technical analyst to introduce candle chart (K-line chart) technology to western systems, the recognized authority of K-line technology in American financial circles, and the writer of famous financial special issues such as The Wall Street Journal, Barnes & Noble and Institutional Investors. He was originally a technical analyst. After coming into contact with candle diagram technology by chance, he found that this age-old technology far exceeded the western technical analysis method. This work has been completed by extensively collecting the technical data of candle drawing in Japanese original text and translating it into English. Mr Ding Shengyuan, the translator, is also a great translator. He also translated my last memoir of Harle's stock masterpiece. Teacher Ding has a profound writing style, is proficient in economics and technical analysis, and translates fluently. Recommend a friend to appraise his translation.
2. The reasons for the successful spread of candle painting technology.
Why does candle chart analysis technology win the favor of traders and investors all over the world?
1) The application of candle diagram is quite flexible, and it can be used alone or combined with other technical analysis methods.
2) Candle pictures have been circulated in Japan for hundreds of years, which comes from the success and failure of hundreds of years.
3) In the candle chart technology, a set of vivid terms are used to describe various price forms, which is very pictographic. For example, Hanging Lines, Tombstone Lines, Three Crows and Three Soldiers March.
3. The historical background of candle painting technology.
? Dianwo in Osaka City is an agent of Toyotomi Hideyoshi's military materials. The front yard of Dianhe's house is so important that the first rice exchange in Japan sprouted from here.
? 17 10 years later, the front yard of Dianwo finally developed into a formal organization-Tangdaohui (Rice Exchange), and at the same time it developed from physical transaction to rice warehouse receipt transaction. Rice warehouse receipt is the earliest futures contract in the world. Daming, Japan, sells rice tax in advance as the rice warehouse receipt of the futures exchange to mortgage the future rice harvest. Tangdao rice will become the first in the world.
? The "God of Market" appeared in Sakata for a long time. Honda is very strong in the spot of rice, and it has all the information about the rice market. Zongjiu deeply studied the rice price record and created his own communication system. His research works Sakata Tactics and Wind, Forest, Fire and Mountain are said to have been written in18th century. He is in the rice market.
Trading strategy has gradually evolved into the candle chart method used by modern Japanese investors.
Table 1: Historical evolution of candle drawing technology
Second, the types of candle paintings
There are many basic figures in the candle diagram, which I classified and summarized in the form of mind map.
Table 2: Candle Diagram Basic Form Mind Map Mode
I put the various forms in order of importance: anti-form >; Star > crosshair > other inversions > continuous form.
See the figure below for the specific graphics and meanings of the main forms:
Table 3: the main forms and precautions of candle thread (my heart and blood! Please indicate the author when forwarding! )
Third, actual combat.
A theory without actual combat is useless. There are hundreds of cases in the book, but they are out of date! I will boldly take some of the latest cases to practice my hands.
1, weekly chart of stock trend (September 2065438+04-June 2065438 +06, data from WIND)
The continuous cross line of 1234 shows a long-short attitude. The stock market reached the lowest point of the last wave of stock market crash in March 20 1849, followed by horizontal consolidation in the whole year of 20 14 and began to improve in July 20 14.
5 is the bull engulfing, and then forms a nonstandard crosshair with the crosshair behind, indicating the bull trend of the market, and the 6-hammer line subsequently verifies the bull trend.
7 bulls grabbing the waist line greatly boosted the market, and triggered a full-month rebound of11-kloc-0/2, ending at the 8-day hanging line.
9 can not be regarded as the inverted hammer line, because it is not after the downward trend, but has formed an rising pressure level, which has been tested many times in the later period.
10 formed a multi-head engulfing pattern, which triggered the most brilliant rise from March 20 15 to June 20 15.
12 and 13 continue to rise, 14 and 15 are multi-head belts, and there is a window between them, which jumps upward and strengthens bulls. 16 star line slowed down the previous increase, and 17 appeared bearish.
18 and 19 form a deformed bearish pregnancy line, especially the upper and lower shadow lines of 19 are very long, indicating that the long and short struggle is fierce.
At 20,21,there was a flat-topped pattern, and at the same time, there were multiple bearish patterns such as long bearish belt line and short engulfment, and the market collapsed instantly.
22 hammer line put the brake down, 23 with 22.
24 small bears swallowed up, the market consolidated, 25 inverted hammer line brought hope of rising, and 26 cross star suspended the rise.
The crosshairs of 27, 28 and 29 first form a multi-head engulfment, and then the next big yinxian line becomes a short engulfment. At the same time, they form a flat-headed top shape with a pressure level. Later, it was tested again, and the waistline of 20 bears fell until the end of 3 1 inverted hammer line and entered consolidation. More than 32 bulls swallowed up.
2. USD/RMB chart (July 2009-2065438+September 2007, data from WIND)
1 is a period of very small price fluctuation in 2009 and 20 10.
2USDCNY continued to fall, although there was a cross line during the period, it was followed by a negative line.
3 and 4 form a flat bottom shape, accompanied by deformed hammer lines and crosshairs.
There is a tombstone line, which shows that the price of USDCNY is weak and continues to fall.
The cross line shows that the market is hesitant and is close to the bottom.
7 is located at 20 14, 1, producing a morning star, and the lowest reserve price of this round is 6.0406. In particular, the length of the sun line behind the star is enough to cover the previous negative line around February 20 14, or even April 20 13.
The intersection line ended the previous surge.
9 form a flat bottom shape.
10 flat head shape, evening star shape, while the upward pressure level did not break through the market and fell.
1 1 Continuous small spindle lines and crosshairs indicate that the market is hesitant.
12 bullish band, suddenly broke through the pressure level of 5, and the increase of USDCNY was gone.
13 and 14 form abnormal long-term engulfment and continue to rise.
15 Hang up the line, and then confirm with the big yinxian line.
16 flat bottom shape.
17 this round reached a maximum of $6.9666 CNY, and both the flat-headed shape and the short-swallowed shape increased their decline.
18 has a cross star with a gap, but the positive line below is not strong enough. After a short period of stability, it continued to fall.
19 is this year, with a puncture pattern, barely reaching half of the previous big yinxian line, but the lower shadow line is very long, and the market outlook needs to be confirmed by the yangxian line, otherwise it will be difficult to change the downward trend.
Fourth, ask questions.
1. If you find any questions in the book during reading, please write them here, hoping that experts can answer them:
In the form of counterattack line on 9 1 page, figure 6.42 shows the form of bearish engulfment in the graph of March 1989, but the form of bearish counterattack line is written in the text.
2. Although historical data can be analyzed according to candle chart technology, the past has passed, and more importantly, the future trend needs to be verified!
Five, candle thread and other technical methods * * *
Candle chart can be used with trend line, percentage withdrawal level, moving average, swing index, volume, Eliot wave theory and so on. The conclusion after multiple verifications will be more powerful and accurate, and I will study it step by step before analyzing it.
Conclusion: There is a blank title page at the beginning of the book, "Candles burn themselves and illuminate others." Now I have only learned the most basic method of drawing candles, and I still need to practice hard to improve my level. Light the road ahead with candles!
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Xiao Wei Nuanxin
Written on September 30th, 20 17.