Beyond Candlesticks

Steve Nison introduced Japanese candlestick analysis to the West, and here he goes a step beyond the patterns he himself made popular.

If you already know the classic patterns — engulfing, hammers, morning stars — Nison presents charting techniques here that are far less known outside Japan: Kagi charts, which ignore time and mark only meaningful changes in direction; Renko charts, built from fixed price bricks; the Three-Line Break, which filters out noise by requiring three consecutive bricks to confirm a reversal; and the Disparity Index, which measures how far price has drifted from its average.

The thread running through it is the same as his first book: reading what price and volume say on their own, without relying on derived indicators. Nison combines these tools with traditional candlestick patterns to show how they reinforce each other, with examples across different markets throughout the book.

This is a book for someone who already masters basic candlestick patterns and wants to expand their technical analysis toolkit, not a first introduction to Japanese candlesticks. If you have never worked with candlestick charts, start with an introductory book and leave this one for later.