Posts

Showing posts from January, 2016

Trading with Japanese Candlestick Charts

Image
Japanese candlestick charts are arguably the most commonly used charts. It has not always been that way. Candlestick charting techniques were only introduced to western traders in the late 70s by Steve Nison.

A bit of history of Candlestick Charting Candlestick charting was invented by a rice merchant named Munehisa Homma in Kyoto, Japan in the late 1700s. The merchant made a fortune trading rice and rice warehouse receipts, the first futures contract ever, using only historical daily price information that he visualized using what we now call Candlestick Charts. The Japanese Candlestick Charts have since than only been used used by Japanese traders until the American Steve Nison introduced the techniques to the West in the late 70s. He is still the Western authority on Candlestick Charting. You can find out more about him on www.candlecharts.com. I have one of his books:


Trading plans for 2016

Image
Here is a New Years message from Dave: Happy New Year! I am so thankful that you have shown interest in my blog and in my trading this past year. In 2015 I really started to take this personal trading blog more seriously and I hope you have noticed it. I wanted to take it to a higher level and make it interesting to read for more people then just my close friends and relatives. I cleaned out old trading journals that were still on this blog. And I am trying to make this blog as valuable as possible to new and experienced traders as possible.

In 2015 I also started to trade in a systematic way and luckily 2015 was a profitable year.

In this post I will look back at 2015 a bit. But mostly I am writing this to tell you my plans for 2016.

Trading with Support and Resistance

Image
Support and resistance trading is one of the basic building blocks of trading. Not only is it a basic building block of my personal trading, but also of most trading done by professional traders. So even if your trading system does not incorporate support and resistance it is still good to understand it and take notice of the most important price levels. Just because many traders are watching these levels, price usually will react when it gets there. Support and resistance is all about "Bulls and Bears", aka "Buyers and Sellers" and how price itself effects their behaviors / decisions.