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Encyclopedia of Candlestick Charts

This book will be available sometime in 2008.

Candlestick patterns are footprints of the smart money and deciphering those footprints properly can bring traders and investors riches. Encyclopedia of Candlestick Charts takes an in-depth look at 103 candlesticks, from identification guidelines, to statistical analysis of their behavior, to detailed trading tactics. Never before has a book combined a comprehensive list of candlesticks with a statistical review of their performance...until now.

This easy to read and use reference book follows the same format as the best-selling Encyclopedia of Chart Patterns.

In each chapter of Encyclopedia of Candlestick Charts you’ll find:

  • Behavior and Rank shows how each candle is theoretically supposed to work and how it actually does, with rankings against other candlesticks plus the psychology behind the pattern.
  • Identification Guidelines describe what to look for.
  • Statistics include the following tables: general statistics, height statistics, volume stats, reversal rates, and performance indicators.
  • Trading Tactics discuss strategies to increase profits and minimize risk
  • Sample Trade walks you through a hypothetical or actual trade using real data.
  • For Best Performance is a quick reference table of selection tips to boost performance

Encyclopedia of Candlestick Charts also includes chapters covering important findings, a statistics summary, glossary/methodology, and a visual index to make candlestick identification easy.

Encyclopedia of Chart Patterns, Second Edition

In this revised and expanded second edition of the bestselling Encyclopedia of Chart Patterns, Thomas Bulkowski updates the classic with new performance statistics for both bull and bear markets and 23 new patterns, including a second section devoted to ten event patterns. Bulkowski tells you how to trade the significant events -- such as quarterly earnings announcements, retail sales, stock upgrades and downgrades -- that shape todays trading and uses statistics to back up his approach. This comprehensive new edition is a must-have reference if you’re a technical investor or trader.

"The most complete reference to chart patterns available. It goes where no one has gone before. Bulkowski gives hard data on how good and bad the patterns are. A must-read for anyone that’s ever looked at a chart and wondered what was happening." -- Larry Williams, trader and author of Long-Term Secrets to Short-Term Trading.

From the Inside Flap

The Encyclopedia of Chart Patterns, recognized as the premier reference on chart pattern analysis, extends its lead with this Second Edition. This definitive text includes new bull and bear market statistics, performance sorted by volume shape and trend, more than a dozen additional chart patterns, and a new section covering ten event patterns. Significant events-such as earnings announcements, stock upgrades and downgrades-shape today’s trading, and Bulkowski gives readers the best information on what happens after those events occur. He also shows you how to trade them and uses reliable statistics to back it all up.

In each chapter of Encyclopedia of Chart Patterns, Second Edition you’ll learn the following about each pattern:

  • Results Snapshot-A statistical summary of pattern behavior, including its performance rank, break even failure rate, average rise or decline-all separated by breakout direction and market type (bull or bear)
  • Tour-A broad introduction to the pattern
  • Identification Guidelines-Characteristics to look for
  • Focus on Failures-What failed patterns look like, why they failed, and how to avoid them
  • Statistics-The numbers and what they tell you, separated into bull/bear markets and breakout direction, including average rise or decline, failure rates, volume shapes, performance by size, and busted pattern performance
  • Trading Tactics-Strategies to increase profits and minimize risk
  • Sample Trade-Puts it all together, showing the chart pattern in action, with hypothetical or actual trades using real data
  • For Best Performance-A table of selection tips to boost performance

Encyclopedia of Chart Patterns, Second Edition also includes summary tables ranking chart- and event-pattern performance for easy reference; a glossary; a chapter on methodology explaining what each statistical table entry means and how it was calculated; and a visual index to make chart pattern identification a snap.

The result is today’s most comprehensive and valuable technical analysis reference-one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top.

This book was named one of the year’s top investment books in 2003 by Stock Trader’s Almanac 2003 (page 98). The Encyclopedia of Chart Patternshas been cited in Candlesticks, Fibonacci, and Chart Pattern Trading Tools by Robert Fischer and Jens Fischer ( pages 88-89, 107), Technical Analysis for Dummies by Barbara Rockefeller ( pages 154 - 165), Advanced Options Pricing Models, by Jeffrey Katz and Donna McCormick (page 382) and many other titles (Amazon.com has the full list). The Encyclopedia of Chart Patterns is available in Orthodox Chinese and German, Russian, French and Simplified Chinese translations are pending.

Amazon.com has a “search inside the book” where you can look at the table of contents, view an excerpt, and do a search.

Trading Classic Chart Patterns

Trading Classic Chart Patternsis a combination narrative and reference book (mostly reference). This book was named “The best investment book of the year” by Stock Trader’s Almanac 2003 (see page 94 of that book). Trading Classic Chart Patterns has been cited in Candlesticks, Fibonacci, and Chart Pattern Trading Tools by Robert Fischer and Jens Fischer (Wiley 2003, pages 88-89). Translations into Simplified Chinese and German are pending.

In his follow-up to the well-received Encyclopedia of Chart Patterns, Thomas Bulkowski gives traders a practical game plan to capitalize on established chart patterns. Written for the novice investor but with techniques for the professional, Trading Classic Chart Patterns includes easy-to-use performance tables, vivid case studies, and a scoring system that makes trading chart patterns simple. This comprehensive guide skillfully gives investors straightforward solutions to profitably trading chart patterns. Trading Classic Chart Patterns also serves as a handy reference guide for favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and double and triple bottoms. Filled with numerous techniques, strategies, and insights, Trading Classic Chart Patterns fits perfectly into any pattern trader’s arsenal.

From the Inside Flap

From the author of the Encyclopedia of Chart Patterns comes his latest work, Trading Classic Chart Patterns, a groundbreaking primer on how to trade the most popular stock patterns. Written for the novice investor but containing techniques for the seasoned professional, this comprehensive guide includes easy-to-use performance tables supported by statistical research. By using a simple scoring system, you’ll learn how to predict the performance of a chart pattern almost by looking at it.

If you’re new to chart patterns, technical analysis, or to stock market investing itself, the "Getting Started" section provides new ideas on trendlines, support and resistance, placing stops, and avoiding common investment mistakes. As your trading knowledge and experience increase, the "Trading Classic Chart Patterns" section will serve as a handy reference guide for your favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and triple tops and bottoms. You’ll quickly learn about the Adam-and-Eve combinations of double tops and bottoms, and how to select the best performers while avoiding the losers.

You’ll discover:

  • How to use the price trend leading to a chart pattern as a gauge of future performance
  • Why breakout gaps often improve performance-but by less than you think
    • How tall formations perform substantially better than short ones
    • What a partial decline is and how to buy in early for a larger profit
    • Whether high breakout volume really improves performance
    • How to identify horizontal consolidation regions that may stop prices dead in their tracks
    • A new tool, called the horizon failure rate, to assess performance over time

    The scoring system makes trading chart patterns simple. Use the performance tables to score your stock pattern, then add up the scores. If they total above zero, the stock is an investment candidate; if they are below zero, you’ll know to avoid that particular stock. It’s that easy!

    Trading Classic Chart Patterns is a trader’s reference that’s destined to become a classic. This book is an invaluable resource that provides the obvious answer-Yes!-for every investor who has wondered if trading chart patterns can be profitable.

  • Getting Started in Chart Patterns

    This paperback is as entertaining as it is informative. Filled with in-depth insights and practical advice, Getting Started in Chart Patterns is designed to help both new and seasoned traders profit by tracking and identifying specific chart patterns. Expert Thomas Bulkowski opens with a basic discussion of chart pattern formation and how bad habits can hurt trading. He then moves on to introduce over 40 key chart formations as well as numerous trading tactics that can be used in conjunction with them. Readers will benefit from the specifics (actual trades with dollar amounts) outlined throughout the book and the frank discussions of how trading behavior can affect the bottom line. Anecdotes from Bulkowski’s own trading experiences are also included to shed light on how one of the best in the business goes about trading with chart patterns. Use Amazon’s “search inside the book” for more details.

    Testimonial

    "I started out in late 2003 with $123,000 in our multiple IRA accounts. My results, focusing exclusively on the Precious Mining Junior Exploration Companies, really took off AFTER I read your [Getting Started in Chart Patterns] book. By March 2006, our IRA accounts had exceeded $1,000,000. Your explanations of Support & Resistance; Fibonacci retracements; and High, Tight Flag formations really paid off!" -- email from Rich K. of California

    Endorsements

    (from the book cover):

    "When it comes to chart reading, Thomas Bulkowski can be categorized as a sui generis (constituting a class alone). Combining objective analysis with a fictional element has resulted in a highly entertaining read, one that any trader will benefit from." Jayanthi Gopalakrishnan, Editor of Technical Analysis of Stocks & Commodities magazine.

    "Nobody explains the nuts and bolts of how - exactly - to use chart patterns to make real money in trading like Tom Bulkowski. I always do better in my own trading after reading a Bulkowski book. This is the practical, down-to-earth guidance you have been looking for in books on technical analysis. Bulkowski doesn’t give you platitudes - he gives you live examples. Even better, he admits that patterns don’t always deliver what we expect and he quantifies both success and failure rates for the top moneymaking patterns. Nobody writes about chart work better than Bulkowski." - Barbara Rockefeller, independent trader and advisor (www.rts-forex.com), author of Technical Analysis for Dummies.

    "In Getting Started in Chart Patterns, Bulkowski offer easy-to-apply advice for looking at charts and making them work more effectively for you in your trading. It is his passion; it probably also will become yours after reading this book. A must for budding technicians!" - Gail Osten, Executive Editor of Stocks, Futures & Options (SFO) magazine.

    Book Corrections

    The publisher corrects the books as new printings occur. If you find a mistake, then contact me, Tom Bulkowski.

    Encyclopedia of Chart Patterns, 2nd Edition

    • Page 248, Table 15.1, Breakout volume. Change ’Heavy’ to ’Light’ as in ’Light breakout volume is best.’
    • Page 248, bottom of page, Breakout volume. Change the sentence to read, ’Look for light breakout volume but do not discard an EADB just because the breakout occurs on above-average volume.’ Two changes were made to the sentence, the words ’heavy’ to ’light’ and ’below’ to ’above.’
    • Page 376 to 388, even numbered pages, the header should read ’Head-and-Shoulders Bottoms’ not ’Heads...’
    • Page 406 to 436, even numbered pages, the header should read ’Head-and-Shoulders’ not ’Heads...’
    • Page 627, Table 41.1, Width. Change ’trend’ to ’tend’ as in ’Scallops tend to be wider...’
    • Page 970. Break-even failure rate rank for Rectangle Bottoms, down breakout. Rank should be 14, not 15. And change Rectangles to Rectangle. Overall Rank changes from 12 to 11 and the others move up by 1 through Island Reversals, down breakout (which has an overall rank of not 21 but 20).
    • Page 972, about a third of the way down. Change ’Cup with Handdle" to ’Cup with Handle.’

    Getting Started in Chart Patterns

    • Page 23, second bullet item down from the top. Should read ’Expect a larger price rise’ not decline.
    • Page 218, Broadening Formation, Right-Angled and Ascending picture in the lower left. Ignore the arrow.
    • Page 219, Table 9.3. Change -50% to 50%.
    • Page 219, Paragraph immediately below Table 9.3. Change ’downward breakouts,’ to ’upward breakouts,’

    Trading Classic Chart Patterns

    • Page 63, Table 3.3. Change ’Percentage above Breakout Price’ to ’Percentage above or below Breakout Price’
    • Page 164, Table 8.15. Third column, ’Adam & Adam’ should be ’Eve & Adam’

    Copyright © 2005-2007 by Thomas N. Bulkowski. All rights reserved. Books: The original laptop.